GST Rate Cut: A Boon for India's Economy

Delhi Chief Minister Rekha Gupta hailed the GST rate cut as a significant boost for the Indian economy. The revision simplifies tax rates from four to two, providing relief on essential items and exempting life and health insurance. This move is predicted to strengthen trade and support renewable energy in Delhi.

In a significant announcement, Delhi Chief Minister Rekha Gupta on Thursday praised the recent reduction in the goods and services tax (GST) as a major economic boon. Gupta called the revision a 'big gift' for the nation, expected to bolster trade and businesses across India.

The GST Council's decision, unveiled at Gupta's inaugural meeting on Wednesday, simplifies the existing tax structure from four slabs to a streamlined two-rate system, at 5 and 18 percent. The adjustment includes a proposed special 40 percent slab for specific high-value items such as luxury cars, tobacco, and cigarettes.

Gupta highlighted the relief this brings to millions in India, especially with exemptions on health insurance and educational items, praising Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their decisive actions. The initiative is set to benefit Delhi significantly through enhanced support for renewable energy projects like solar power.

(With inputs from agencies.)