The recent GST reforms introduced by the Central government have drawn praise from the bjp units of punjab and Himachal Pradesh. Officials described the changes as a “gift for farmers and the common man”, highlighting the benefits for agriculture, essential goods, and insurance coverage. Here’s a breakdown of the key points.

1. Farmers Get Major Relief on Equipment

Under the new GST reforms, tax rates on tractors, harvesters, threshers, and other agricultural machinery have been significantly reduced.

• This move lowers farmers’ expenses.
• Reduces the cost of agricultural production.
• Strengthens Punjab’s farmer-driven economy.

According to sunil Jakhar, punjab bjp president, this decision comes at a crucial time for the agriculture sector, providing much-needed financial relief.

2. Simplified GST Slabs for Easier Compliance

The new reforms have eliminated the 28% and 12% GST slabs, leaving only 5% and 18% rates.

• Essential items such as milk and flour are now completely GST-free.
• Many commonly used items are taxed at just 5%, making them more affordable for households.

This simplification is expected to ease the tax burden on both consumers and traders, making compliance simpler.

3. Historic Relief on Insurance Premiums

The GST on life insurance and health insurance has been completely removed, marking a historic step for citizens’ financial security.

• Premiums for essential insurance policies will effectively become cheaper.
• This move ensures better coverage and protection for families across punjab and Himachal Pradesh.

4. Support for Small Traders and General Public

Jakhar emphasized that the reforms are not only pro-farmer but also beneficial for small businesses and consumers.

• Reduced tax on daily essentials lowers household expenses.
• Small traders benefit from simpler tax compliance and reduced rates, making business operations smoother.

5. Political Reactions: bjp Praises, congress Criticized

• Himachal bjp legislator Randhir Sharma criticized congress leaders for opposing reforms despite initially supporting them in the GST Council meeting.
• Congress state leaders, including Industry minister Harshwardhan Chauhan, expressed concerns over potential revenue loss of Rs 1,000 crore.
• BJP officials countered that public benefit outweighs short-term revenue concerns, highlighting the reforms as a people-first initiative.

6. Central Government’s Commitment Highlighted

Both Jakhar and Sharma thanked prime minister Narendra Modi and Finance minister Nirmala Sitharaman, calling the reforms a proof of the Central government’s dedication to improving citizens’ lives.

The reforms showcase a proactive approach to economic relief, benefiting multiple sectors, including agriculture, insurance, and small-scale trading.

7. Bottom Line: GST Reforms to Strengthen Economy and Society

• Farmers save on machinery costs.
• Daily essentials become more affordable for middle-class families.
• Insurance becomes cheaper, ensuring wider financial protection.
• Simplified GST slabs reduce compliance burden.

These changes are expected to boost the economy, support citizens, and strengthen the agriculture-based sectors, while highlighting a clear divide in political response.

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