The Modi government’s recent reductions in Goods and Services Tax (GST) slabs are poised to bring substantial benefits to the Indian economy, including increased revenue, higher sales, and accelerated job creation. Maharashtra Deputy Chief Minister Eknath Shinde highlighted these advantages during the GST Savings Festival event held in Mumbai’s Kalbadevi area.
**A Significant Step Towards Atmanirbhar Bharat**
Speaking at the event, Shinde emphasized that the GST reforms mark a significant stride towards realizing Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat (Self-Reliant India). These reforms also align with the goal of fostering a Swadeshi (indigenous) economy, strengthening domestic industries and reducing dependence on imports.
**Simplified GST Structure**
Effective from September 22, 2025, coinciding with the festive occasion of Navratri, the GST reforms simplify the tax regime by consolidating most rates into just two slabs: 5% and 18%. The previous 12% and 28% categories have been removed for a majority of goods.
This overhaul impacts around 375 items, making everyday essentials such as soaps, toothpaste, Indian breads, electronics, automobiles, and even medicines more affordable for consumers. Additionally, the changes reduce compliance burdens for businesses.
A notable highlight of the reforms is the complete waiver of GST on medicines. Taxes on gyms, salons, yoga services, and man-made fibres have also been slashed from 18% to 5%, enhancing competitiveness in the textiles sector and boosting exports.
**Direct Impact on Consumers and Businesses**
During the GST Savings Festival, Shinde engaged with local traders in Kalbadevi, Mumbai’s bustling commercial hub, explaining the benefits of the GST rate cuts. He urged traders to pass on these savings to customers, emphasizing that reduced taxes will spur production, increase sales, and create employment opportunities.
“When taxes decrease, sales rise, production increases, and job creation gets a fillip. With GST on medicines fully removed and overall rates lowered, revenue will grow, giving momentum to the national economy,” Shinde told reporters.
**Driving Self-Reliance and Strengthening Defense**
Shinde linked these reforms to broader national objectives, particularly in reducing reliance on foreign equipment in the defense sector. “Domestic production of missiles and defense materials will become easier, marking a giant leap towards self-reliance,” he added.
He also praised GST’s role in elevating India’s global economic standing. Highlighting that India has advanced from the world’s 11th to 4th largest economy, Shinde expressed confidence in achieving third place soon and realizing a developed India by 2047.
**Engagement with Traders in Kalbadevi**
The event provided an opportunity for Shinde to interact with members of the historic Hindustan Chamber of Commerce, one of Kalbadevi’s oldest trader bodies. He reassured traders of the Maharashtra state government’s support in addressing any challenges related to GST implementation.
“If there are any issues with GST enforcement, the Maharashtra government will certainly address them,” Shinde affirmed.
**Notable Dignitaries in Attendance**
Prominent attendees included Member of Parliament Milind Deora, Shiv Sena’s Sushibai Shah, Hindustan Chamber of Commerce President Sushil Gadia, Ramkishor Dark, Mahendra Jain, Amrit Khevasara, Anurag Poddar, former MLA Raj Purohit, Shiv Sena’s Rajaram Deshmukh, and several local traders.
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These GST reforms pave the way for a more streamlined tax system, consumer-friendly pricing, and a robust economy aligned with the country’s vision for self-reliance and sustainable growth.
https://www.freepressjournal.in/mumbai/maharashyra-dycm-eknath-shinde-hails-gst-slab-cuts-as-boost-to-sales-jobs-and-atmanirbhar-bharat
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