New GST slabs simplified system, Congress levied high taxes on essentials: PM Modi

Prime Minister Narendra Modi on Thursday said that the new Goods and Services Tax structure has eased the tax system, and alleged that the Congress-led regime before 2014 levied high tax rates even on essential items.

At an interaction in New Delhi with educators who received the National Teachers Awards, Modi said that the new GST structure will boost consumption and growth, and will improve the ease of doing business.

On Wednesday, the GST Council revamped the system into a primarily two-rate structure of 5% and 18% tax slabs, replacing the current four-tiered one.

With this, daily-use goods such as soaps, shampoos, butter, ghee, utensils and stationery will get cheaper. Additionally, health and life insurance will attract no GST. Rates have also been reduced on vehicles and electronic appliances such as televisions and washing machines.

The new rates will take effect on September 22 for most items. The GST system took effect in July 2017, replacing several indirect taxes such as the Value Added Tax, the Central Excise Duty.

On Thursday, Modi said that the tax regime under the Congress government had upset the monthly budgets of households.

“Farm inputs, medicines, life insurance and many such items were taxed heavily,” he said. “In 2014, if something cost Rs 100, Rs 20 to Rs 25 of...

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