BJP to launch ‘GST savings festival’ with rollout of two-rate regime

The rolling out of a two-rate Goods and Services Tax (GST) regime, a long-awaited reform, will see the Bharatiya Janata Party (BJP) launch a nationwide campaign titled ‘GST savings festival’ from September 22 to 29 to spread awareness of the new tax system among traders, shopkeepers and the general public.

All BJP Members of Parliament have been directed to organise pad yatras or foot marches in the markets of their constituencies as part of the campaign.

The week-long exercise, coinciding with the implementation of the new GST structure and the festive season, is being projected as a significant element of the BJP’s economic messaging at the ground level.

Earlier this month, the 56th GST Council meeting decided to rationalise GST rates to two slabs of 5% and 18% by merging the 12% and 28% rates.

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

The 18% slab applies to most goods and services, including automobiles such as small cars and motorcycles (up to 350 cc), consumer electronics, household goods, and some professional services. A uniform 18% rate will apply to all auto parts.

A 40% slab remains for luxury and sin goods, including tobacco, pan masala, cigarettes, bidis, aerated sugary beverages, luxury vehicles, high-end motorcycles above 350 cc, yachts and helicopters.

Certain essential services remain fully exempt, including individual health, family floater and life insurance premiums, as well as education and healthcare services..