The Andhra Pradesh (A.P.) Legislative Assembly passed a resolution in support of the rationalisation of GST rates by the Central government, on the first day of the monsoon sessions that began on Thursday.
Making a statement on it, Chief Minister N. Chandrababu Naidu said the GST rate cut was a bold and transformative reform by the Prime Minister Narendra Modi and expressed confidence that it would give a big boost to the economy.
He stated that it was a landmark decision taken by the 56th GST Council and the simplification and rationalisation of the GST structure would directly benefit the common people, reduce the compliance burden on businesses, and enhance transparency in the tax system.
The reforms carried out in the last 11 years under Mr. Modi’s leadership gave a fillip to welfare and development, and the latest GST rate rejig would strengthen cooperative federalism, promote ease of doing business, speed of doing business, and support labour-intensive sectors besides boosting consumption and driving investments thereby contributing to the sustained growth trajectory of the Indian economy, he asserted.
The Chief Minister further said these GST reforms would usher in growth of companies, leading to a Swadeshi consumption pattern, and make Indian brands global in the future. He congratulated the Prime Minister and Finance Minister Nirmala Sitharaman on their exemplary leadership in securing unanimity in the GST Council for the reforms.
Mr. Naidu went on to explain the benefits of the GST rationalisation for various sections and noted that there were 17 types of taxes and 13 cesses and surcharges, which made the products and services costly to that extent.
The bringing down of the number of GST slabs from four to two would be of tremendous benefit to the people, especially the middle classes and the poor as the prices of a host of essential commodities and consumer durables would come down significantly, he added.
Pawan hails move
Deputy Chief Minister K. Pawan Kalyan said the GST 2.0 reforms would increase the purchasing power, boost market demand, attract industries, and generate employment. In spite of the potential revenue losses, the A.P. government endorsed the reforms keeping in view the larger good being done by them. He observed that the GST rate cut on essentials like milk, curd, medicines, and health insurance would reduce the household expenses and improve public health.
The lower taxes on farm machinery would help in increasing agricultural productivity and rural incomes, while the slashing of GST on cement, cars etc. would make a whole lot of things affordable, he noted.
