GST overhaul gets Assam’s backing; CM Sarma calls it ‘super booster’ for economy

Guwahati, Sep 4: Chief Minister Himanta Biswa Sarma has said the state will support the Centre's proposal to have only two slabs in the Goods and Services Tax (GST) – 5% and 18%.

The 56th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, on Wednesday started deliberations on “next-gen GST” reforms, which will lower tax rates on items of mass consumption, remove duty inversion in sectors, like textiles, and ease compliance burden for MSMEs

"We are supporting the move of the Prime Minister. Assam's position will be to lower the GST to two slabs of 5% and 18%,” Sarma told the press.

Later, taking to social media, Sarma noted that having closely followed the evolution of GST over the past eight years, particularly during his tenure as Assam’s Finance Minister, he viewed the development as a defining moment.

“The new regime agreed upon today will serve as a super booster for the Indian economy, bringing agility to small & medium businesses, spurring job creation, driving consumption, and most importantly, leaving more money in the hands of our people,” he wrote in the post.

Assam Finance Minister Ajanta Neog is attending the meeting in the national capital, he said.

"We are going to support the initiative of the central government completely. Whatever the PM has said should be implemented," Sarma said.

The Council, over the next two days, will discuss reducing the number of slabs in GST to just two, and removing the 12% and 28% slabs. Also, a special 40% tax has been proposed on a select few items, including tobacco and ultra-luxury goods.

Prime Minister Narendra Modi, in his Independence Day speech on August 15, unveiled the plan for GST reforms.

Shortly thereafter, the central government shared a blueprint of the planned reform with a Group of Ministers (GoM) from different states for initial vetting.

PTI