Delhi CM: GST Rate Slash Gives Massive Relief for Millions Across India

Delhi Chief Minister Rekha Gupta lauded the recent goods and services tax (GST) rate reductions as a “big gift” for India, predicting a transformative impact on the nation’s economy. Speaking to reporters after attending her first GST Council meeting on September 3, Gupta expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the decision, which she described as a milestone for strengthening trade and businesses nationwide.

The GST Council approved a simplified two-rate structure of 5 and 18 percent, replacing the previous four-slab system, with a special 40 percent slab proposed for select luxury items like high-end cars, tobacco, and cigarettes.

Significant reductions were made on everyday essentials, including hair oil, corn flakes, TVs, and personal health and life insurance policies, with the latter now fully exempted from the previous 18 percent GST rate. Additionally, lifesaving drugs and medical devices have been exempted or seen reduced rates, delivering direct financial relief to millions.

Gupta highlighted the benefits for Delhi, emphasizing the exemption of GST on health insurance and educational items as well as support for renewable energy initiatives like solar power. “Delhi is very happy, and I thank the prime minister on behalf of Delhi citizens,” she stated, noting that these changes align with the city’s push for sustainable energy solutions.

The rate cuts are expected to ease the financial burden on households and stimulate economic activity across sectors, marking a pivotal step in enhancing affordability and accessibility for essential goods and services.

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