Prime Minister Narendra Modi’s Independence Day announcement on reforms in the Goods and Services Tax (GST) slabs has sparked enthusiasm among traders in UP. Under the proposed "GST 2.0" or "Next Gen GST," only two tax slabs — 5 per cent and 18 per cent — will remain, replacing the existing 5, 12, 18, and 28 per cent structure.

With this change, nearly 99 per cent of items currently under the 12 per cent bracket, such as butter and fruit juice, are expected to move to the 5 per cent category, making them cheaper by around 7 per cent.

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Similarly, about 90 per cent of goods in the 28 per cent slab, including cement, ACs, TVs, refrigerators, and washing machines, will shift to the 18 per cent category, resulting in a 10 per cent price drop. The effect of these reforms is expected to be visible in the markets ahead of Diwali.

Traders across sectors have welcomed the move. The Uttar Pradesh Cement Vyapar Sangh, which had been demanding slab revisions, termed it a “commendable initiative.” State president Shyam Murti Gupta said, “Cement dealers who earlier paid 28 per cent GST will now pay 18 per cent, saving 10 per cent. A cement bag priced at Rs 400 will now cost around Rs 360.”

Similarly, the textile sector has expressed relief. Ashok Motiani, President of the Uttar Pradesh Textile Industry Trade Delegation, said the uniform 5 per cent GST on both readymade and unstitched clothes would directly benefit both traders and customers.

Electronics traders also welcomed the reform. Mayank Manocha, an electronics dealer, highlighted that the current 18 per cent GST on 32-inch TVs, which rises to 28 per cent for larger models, is burdensome. He suggested a uniform 12 per cent slab for all appliances to boost sales and compliance.

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Tile and hardware dealers echoed similar sentiments. Anupam Shukla of Vinayak Hardware noted that GST on tiles currently stands at 18 per cent and reducing it to 5 per cent would encourage more households to invest in tiles and sanitary products, ultimately benefiting customers, dealers, and the government alike.