Mumbai (Maharashtra) [India], September 5 (ANI): Union Minister for Coal and Mines G Kishan Reddy lauded the reforms in the Goods and Services Tax (GST) and said that the tax on coal has been reduced.

Speaking to reporters on Thursday, Reddy said that the public will benefit from the 'revolutionary reforms'.

He said, 'There were four slabs in GST, but now it has been reduced to two. This has been done keeping in mind the ease of living and ease of doing business. People will greatly benefit from the revolutionary reforms, which have also led to a reduction in the tax on coal.'

The GST on coal has been raised from 5 per cent to 18 per cent. However, according to the Ministry of Finance, coal previously attracted a 5 per cent GST, along with a Compensation Cess of Rs 400/ton, prior to the rate rationalisation. The Council has now recommended ending Compensation Cess.

Further, the Union Minister added that India is expected to become the third-largest economy in the future.

'Today, if there is any rapidly growing economy in the world, it is India. We are moving forward towards a developed India. India is a country with a stable economic position, and in the coming days, India will become the third-largest economy,' he said.

Union Minister of Textiles Giriraj Singh expressed gratitude towards Prime Minister Narendra Modi for removing the inverted duty in the sector and giving a tax relief to the middle class.

He told ANI, 'On behalf of the textile department and every other sector, I thank PM Modi for forgoing tax of Rs 50,000 crore for the middle class...PM Modi has brought 'roti, kapda and makaan' (food, clothes and shelter) under two slabs. I congratulate everyone for this ahead of Diwali and Durga Puja.'

The GST Council had announced a correction of long-pending inverted duty structure for the manmade textile sector by reducing GST rate on manmade fibre from 18 per cent to 5 per cent and manmade yarn from 12 per cent to 5per cent.

Meanwhile, BJP leader V Muraleedharan called the GST reforms an 'Onam gift' for the people of Kerala.

Muraleedharan said, 'The new tax slabs of the GST, which were announced by the Finance Minister yesterday, is a great Onam gift to the people of Kerala. It has come on the eve of the greatest festival of the Keralites. It is going to benefit the poor, middle class, and various other sections of society. Zero GST will be applicable on health insurance.'

Further, he slammed Kerala Finance Minister KN Balagopal for criticising the decision.

'GST Council has decided to enhance the GST for big corporates. Tax revenues will not come down. I do not understand why the Kerala Finance Minister did not raise any objections during the GST Council meeting, but after the meeting, he interacted with the Malayali media and said that it would create problems for Kerala,' he said.

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.

Union FM Nirmala Sitharaman announced the decision on September 3, after she chaired the GST council meeting. This has reduced the previous GST slabs from 5 per cent, which consisted of essential goods and services, including food and kitchen items, agricultural equipment, handicrafts and small industries, and also medical equipment and diagnostic kits.

While 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.

Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance. (ANI)