What is the impact of the GST revamp on India's economy?

The GST revamp is expected to have a very positive impact on India's economy, according to Finance Minister Nirmala Sitharaman, as it affects every one of the country's 1.4 billion people.

How is the Indian government supporting tariff-hit sectors?

The government is working on providing support measures for tariff-hit sectors, particularly the textile industry, with potential announcements expected soon.

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GST Revamp to Positively Impact India's Economy, Says Finance Minister

Q: What were the guiding principles behind the GST changes?

The guiding principles were to make items of daily use more affordable for the poor, middle class, and farmers, as well as to support the Indian economy's overall Aatmanirbharta (self-reliance) and the MSME sector.

6 Sep

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Summary

GST revamp is a significant taxation reform
Measures to support tariff-hit sectors, especially textiles, expected soon
Comprehensive revamp of GST and income tax code achieved in 8 months

GST Revamp to Positively Impact India's Economy, Says Finance Minister

According to Finance Minister Nirmala Sitharaman, the comprehensive revamp of the goods and services tax (GST) is a significant taxation reform that is poised to positively impact India's economy. While the reforms are not directly intended to address tariff-related challenges, they are expected to provide a cushion for those affected by the tariffs.

The finance ministry, particularly the department of revenue, has undertaken rigorous work over the last six to eight months, resulting in a new income tax code, a direct tax relief of ₹12 lakh, and now the GST revamp. Sitharaman believes the GST reforms will have a very positive impact on India's growth numbers and economic activity, as they affect every one of the country's 1.4 billion people.

The government is also working on supporting tariff-hit sectors, with potential measures expected soon, particularly for the textile industry. Sitharaman stated that the respective ministries are working to put together a package for the sectors affected by tariffs.

The finance minister emphasized that the guiding principles behind the GST changes were to make items of daily use more affordable for the poor, middle class, and farmers, as well as to support the Indian economy's overall Aatmanirbharta (self-reliance) and the MSME sector.

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