Union Home Minister Amit Shah and Defence Minister Rajnath Singh hailed Prime Minister Narendra Modi for groundbreaking GST reforms, describing them as a “historic” and “bold” move to ease the financial burden on millions. The GST Council, chaired by Finance Minister Nirmala Sitharaman, announced sweeping tax rate reductions and a simplified registration scheme, delivering what the government calls a “Diwali gift” for India.

Shah, in a Wednesday X post, praised Modi’s commitment to transformative governance, stating the reforms will provide “huge relief” to the poor, middle class, farmers, MSMEs, women, and youth. “By simplifying the system and reducing the burden on common citizens, these reforms ensure ease of living and give a big boost to ease of doing business, especially for small traders and entrepreneurs,” he wrote. The simplified GST registration scheme is set to streamline processes for small businesses, fostering growth and compliance.

Rajnath Singh echoed the sentiment, commending Modi and Sitharaman for reforms that “bring relief across sectors” and strengthen India’s self-reliance under the Aatmanirbhar Bharat initiative. “This will empower small businesses and boost ease of doing business,” Singh posted on X, highlighting the reforms’ role in enhancing economic resilience.

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Key changes include slashing GST on daily essentials like hair oil, shampoo, toothpaste, toilet soap, toothbrushes, and shaving cream from 18% to 5%. Agricultural equipment also benefits, with tractor tyres, parts, and tractors themselves now taxed at 5% instead of 18% and 12%, respectively. Sewing machines and their parts will also see a reduced rate of 5% from 12%. These cuts aim to make essential goods and farming equipment more affordable, directly impacting households and rural economies.

The reforms, finalized after intense discussions in the GST Council, are expected to lower living costs and spur economic activity, particularly for small businesses and farmers. As India celebrates this economic overhaul, the government’s focus on affordability and entrepreneurship signals a push toward inclusive growth.

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