Lucknow (Uttar Pradesh) [India], September 4 (ANI): Uttar Pradesh Chief Minister Yogi Adityanath on Thursday hailed the newly announced Goods and Services Tax (GST) reforms, saying that such a step is a 'decisive and important step towards making India a leading economy in the global market with a high growth rate.'

'India's economy is entering a new era under the visionary leadership of Prime Minister Narendra Modi. This is not just a tax reform but a decisive and important step towards making India a leading economy in the global market with a high growth rate. Hearty congratulations to PM Modi and Union Finance Minister Nirmala Sitharaman for this far-reaching historic decision,' the Uttar Pradesh CM told ANI here.

Congratulating Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the 'far-reaching historic decision', he said that the new reforms will make it easier for compliance and will generate new employment opportunities.

'Compliance with GST will now be simpler, Ease of doing business will reach new heights, lakhs of new employment opportunities will be generated,' he added.

Highlighting how 'swadeshi' products will also be promoted with the reforms, he mentioned, 'This will also promote the spirit of self-reliance through 'Swadeshi'. This structure will be a solution to the inverted duty structure, settlement of international disputes, and a transparent tax system will strengthen stability and trust among businesses.'

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

The 5 per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agriculture equipment; handicrafts and small industries; also medical equipment and diagnostic kits.

The 18 per cent slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance; also, certain services related to education and healthcare are GST-exempt. (ANI)