U.P. to benefit most from GST reforms, says CM Adityanath
LUCKNOW, Sept. 19 -- Calling the latest GST reforms as Prime Minister Narendra Modi's Diwali gift to the nation, chief minister Yogi Adityanath on Thursday said UP will be the biggest beneficiary of these reforms, citing the state's large consumer base, rapid infrastructure growth and thriving manufacturing hubs.
"The decision will provide relief from inflation, strengthen trade and simplify lives of citizens. Effective from September 22, coinciding with the beginning of Sharadiya Navratri, these reforms will directly benefit consumers, farmers, businesses and ordinary families," he said at a press conference.
He highlighted that Uttar Pradesh has three crore farmer families, which will hugely benefit as agricultural equipment and other inputs will now be cheaper under the new GST regime. Adityanath thanked PM Narendra Modi and Union finance minister Nirmala Sitharaman for the "transformative" reforms.
"This is not merely a tax change, but part of a broader campaign to boost India's economy," he said.
The chief minister highlighted that before the rollout of GST in July 2017, a web of complex taxes - VAT, sales tax, service tax, excise duty, entry tax, and entertainment tax - burdened consumers and businesses alike. He added: "GST unified these into a 'One Nation, One Tax' system. Now, the biggest reform within GST itself has been implemented. The earlier four-tier structure of 5%, 12%, 18%, and 28% has been simplified to just two slabs - 5% and 18%. While a 40% rate will continue on select luxury and sin items, the removal of the 12% and 28% slabs will bring significant relief to the common man."
"From kitchens to agriculture, housing construction to highways and industry to trade, every sector stands to benefit," he said.
Outlining consumer gains, the CM said household items such as milk, curd, cheese, shampoo, toothpaste, soap, bicycles and baby products will now be taxed at only 5% or exempt altogether.
Calling it historic for farmers and rural India, he said the tax on tractors, tyres, pesticides and irrigation equipment has been cut to 5%, reducing farming costs and increasing productivity. This, he emphasized, will not only bring relief to farmers but also give a significant push to the rural economy. He also spoke about various sectors that will benefit due to the reforms.
The CM said UP being India's largest consumer market stands to gain the most from GST reforms. He explained that revenue from VAT and sales tax was only Rs 49,000 crore before 2017, but has now increased to Rs 1.15 lakh crore (excluding the state's central share). These reforms, he said, have enabled the expansion of expressways, metro rail and airport networks in the state.
UP's peppermint, footwear, readymade garments, and 'One District, One Product' (ODOP) industries will particularly benefit. While synthetic menthol has been taxed at 18%, organic menthol -produced largely in UP - will be taxed at only 5%, providing a major boost to both farmers and industries.
He also highlighted UP's progress in infrastructure and traditional industries.
Airports too have expanded - from just two fully operational and two partially functional in 2017 to 16 fully operational airports today, with India's largest airport in Gautam Buddha Nagar set to open by the end of this year.
The ODOP scheme has revitalised traditional crafts, with only 5% GST now applicable on products such as Banarasi sarees, Lucknow's chikankari, Bareilly's zardozi, Jalaun's paper industry and Firozabad's glassware. htc...
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