Uttarakhand's Chief Minister applauds the latest GST implementation as a significant milestone
The 55th GST Council meeting has resulted in a significant decision to rationalize GST rates to two slabs of 5% and 18%, a move that is expected to provide relief to several sectors and contribute to the state's economic development.
Finance Minister Nirmala Sitharaman announced the sweeping reduction in GST rates on a wide range of essential items, agriculture inputs, electronic appliances, and automobiles. This reform will open up new opportunities for the youth and promote economic growth in Uttarakhand, according to Chief Minister Dhami.
The 5% slab extends to handicrafts, small industries such as sewing machines and their parts, agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires. It also includes health and wellness products like medical equipment and diagnostic kits, as well as essential goods and services such as butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils.
On the other hand, the 18% slab consists of a standard rate for most goods and services. This includes consumer goods like electronic items, household goods, certain professional services, and automobiles such as small cars and motorcycles (up to 350cc). A uniform 18% rate also applies to all auto parts.
However, certain essential services and educational items are fully exempted from GST, including individual health, family floater, and life insurance, as well as certain services related to education and healthcare.
In the tourism-dependent state of Uttarakhand, the reform will prove particularly beneficial, as the reduced tax burden will boost investment and open up new employment opportunities for the youth. Dhami thanked Prime Minister Modi and Finance Minister Sitharaman for the decision, which will have a positive impact on the state's economy and citizens.
To further support the state's economy, a 40% GST slab has been introduced for luxury and sin goods, including tobacco, pan Masala, aerated sugary beverages, luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
The new GST rates will be applicable from September 22, 2025, marking a significant step towards simplifying tax procedures and promoting economic growth in Uttarakhand.
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