PUDUCHERRY: The Puducherry Legislative Assembly on Thursday passed a resolution hailing the Next-Generation GST reforms cleared at the 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman.
Chief Minister N Rangasamy, who moved the resolution, praised Prime Minister Narendra Modi’s “Panch Ratna” vision of a simpler tax system, better quality of life, growth and consumption boost, job creation through ease of doing business, and strengthened cooperative federalism.
The reforms simplify GST into two slabs of 5% and 18%. As many as 331 goods previously taxed at 12% and 18% have been shifted to the 5% slab, while 34 goods have been made tax-free. Essential commodities such as soaps and toothpaste will now attract only 5% tax, while life-saving medicines, life insurance and health insurance are fully exempt.
Taxes on small cars, two-wheelers, televisions, air-conditioners and cement have been cut from 28% to 18%. For the farm sector, tax on machinery and irrigation equipment has been reduced from 12% to 5%, offering direct relief to farmers.
The resolution stated that the measures would ease compliance, rationalise rates and directly benefit families, farmers, MSMEs, women, youth and the middle class. It also underlined that the reforms would strengthen States and Union Territories by ensuring sustainable revenue growth.
Expressing its appreciation to the Prime Minister, the Union Finance Minister and GST Council members, the House described the measures as “historic and transformative reforms” to advance the goal of Viksit Bharat.