GST reforms may contribute ₹20 lakh crore to domestic GDP: Ashwini Vaishnaw

Union minister Ashwini Vaishnaw said today that the GST reforms will provide a major fillip to the Indian economy and are likely to contribute an additional ₹20 lakh crore to the domestic gross domestic prouduct (GDP), bringing huge relief to the middle class.

“GST reforms done by Prime Minister Narendra Modi will come as a huge relief to the middle class. GST reforms will contribute majorly to economic progress of the country. Talking in terms of pure economics, the countries’ GDP currently stands at ₹330 lakh crore. Out of this, consumption accounts for ₹202 lakh crore. Even if the consumption component of the GDP rises 10% after GST cuts, it will add about ₹20 lakh crore to the GDP,” said Vaishnaw at a press conference.  

“Naturally, rising production will have ripple impact on job creation. GST reforms will enhance the overall economic activity. Income tax relief and the mega GST decision will it impact the middle class positively,” said Vaishnaw.

“GST changes have come as a big relief to the lives of 140 crore Indians. Taxes were very converted before 2014. Multiple taxes were a bane for the life of the common man. It was a burden on middle class families and common man,” he added.  

“GST reforms have led to simplification. The is simplification and rate rationalization, which comes after stabilisation in GST over last five to years, will positively impact the life of the people. Tax burden on household electronics will come down. Cost of solar panels at households will also come down,” he added.  

 “Tax on every household items, and edibles have come down. This is a very significant decision and Prime Minister Narendra Modi has fulfilled the promise he made from the ramparts of the Red fort on Independence Day,” Vaishnaw said.

Earlier this week, the GST Council announced major reforms reduced GST on majority of items to 5% and 18%.