New Delhi [India], September 5 (ANI): Union Minister Piyush Goyal on Friday termed the GST reforms as a 'streamlined taxation' crediting Prime Minister Narendra Modi's leadership over the decision.

While addressing a press conference in the national capital, the Union Commerce Minister said that under the Congress regime, multiple taxes were imposed including the Value Added Tax and Central Tax, however, PM Modi's government aims to simplify the taxation system for ease of doing business.

He further stated that the opposition parties and state governments came together to decide the GST slabs and implement the reforms.

'Every state, including those ruled by opposition parties, came together to decide on GST slabs and implement the reform. Even during the COVID-19 pandemic, the Modi government provided compensation for five years. PM Modi aims to simplify taxation for ease of doing business, marking a significant transformation. This change will have a large scope, making FMCG, cosmetics, bread, food items, and daily essentials cheaper, benefiting the poor, middle class, farmers, and women. Unlike the Congress tenure, which had multiple taxes like VAT and central tax, today we've streamlined taxation,' Piyush Goyal said.

Goyal emphasised that for the first time since Independence, historic and comprehensive reforms have taken place in the country, which will take the nation to new heights. He further noted that India has the capability to take steps which can give significant results.

'I would like to thank the Prime Minister for this historic and comprehensive reform that will take the country to new heights, perhaps for the first time on such a large scale since independence, a change has been made in the country's tax structure...This will prove to be very beneficial for the ease of doing business...On August 15, the Prime Minister promised the nation that now that the country will not stop, it will not bow. Now India has the capability to take steps that yield significant results,' he said.

The Union Minister accused the Congress party of committing corruption during their tenure and stated that no transformative decisions were taken for the country during their regime.

'When our government came to power, we all know how weak the country's economy was at that time. During Congress's rule, apart from committing corruption, they took no transformative decisions. They only used to make promises, but the action was missing,' Goyal said.

Piyush Goyal further accuse the opposition of creating confusion among people. He mentioned that the burden of paperwork and taxes during the Congress government's time before 2014 has been continuously decreasing since the introduction of GST in 2017.

'From 2017 to 2024-25, whenever possible, the Prime Minister has continued to reduce rates from time to time...The opposition made absurd allegations, false accusations, and tried to create misunderstandings. But the burden of paperwork and taxes during the Congress government's time before 2014 has been continuously decreasing since the introduction of GST in 2017...The tax reform will benefit all sections of society,' he said.

Goyal recalled that the former Prime Minister Atal Bihari Vajpayee envisioned a unified tax system; however, when the UPA government came, they kept making promises without action.

'It was Atal Bihari Vajpayee ji who had once envisioned a unified tax system...But when the UPA government came, they kept making promises without action. The state governments had no trust in them,' Goyal said.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt. (ANI)