Punjab Newsline, Chandigarh–
Haryana CM Nayab Singh Saini said that the Goods and Services Tax (GST) reforms announced by Prime Minister, Sh. Narendra Modi from the ramparts of the Red Fort on Independence Day 2025 have been implemented within just a month. Calling it ‘proof of Modi’s guarantee, which is always fulfilled,’ Sh. Nayab Singh Saini described the reforms as a milestone towards building an Atmanirbhar Bharat. He added that the changes would also play a key role in realising the Prime Minister’s call for swadeshi and Make in India.
Addressing a press conference here today, the Chief Minister said that the 56th meeting of the GST Council, held on September 3, 2025, took several important decisions aimed at easing the burden on citizens, supporting businesses, and strengthening the economy. Calling the decisions ‘welcome steps,’ he said rationalisation of GST rates would make essential consumer goods cheaper, boosting middle-class savings and fueling demand during the upcoming festive season.
Saini said that GST has simplified and made the taxation system more transparent. It has also removed barriers to trade between states and has realized PM Narendra Modi’s vision of 'One Nation – One Tax – One Market.'
Two standard GST rates introduced
The Chief Minister said that India will now have only two standard GST rates i.e 5 percent and 18 percent. The previous 12 percent and 28 percent slabs have been scrapped, while a special 40 percent rate has been retained for ‘demerit’ goods.
The Chief Minister said that the simplified classification would certainly reduce disputes and litigation, while lowering GST rates on commonly used goods and abolishing the cess would directly ease household expenses. The inverted duty structure on textiles and fertilizers has also been removed, reducing working capital blockages for dealers, he shared.
The Chief Minister said the registration process has been simplified, enabling automatic registration within three days for low-risk applicants, with system-based provisional refunds to be issued within set timelines.
Relief for farmers and agriculture
Highlighting that the reforms primarily take into account farmers’ interests, the Chief Minister said that Haryana, being an agrarian state, had urged the Council to reduce GST rates on agricultural equipment used for crop residue management, a request that was accepted. He expressed gratitude to the Union Finance Minister, Smt. Nirmala Sitharaman for this.
The Chief Minister said that packaged milk and cheese have been made GST-free, while rates on ghee, butter, and dry fruits have been cut from 12 percent to 5 percent. Roti and paratha have been exempted entirely. These steps, he said, will not only reduce inflation but also encourage traditional food businesses, strengthen food processing in Haryana, boost farmers’ value addition, and create rural jobs.
The Chief Minister said that the Council also lowered GST on irrigation and tillage machinery from 12 percent to 5 percent, reducing equipment costs. Bio-pesticides and fertilizer inputs like ammonia, sulphuric acid, and nitric acid will now attract only 5 percent GST, promoting sustainable agriculture, he informed.
The Chief Minister shared that for tractors, the GST rate has been reduced from 12 percent to 5 percent for engines below 1800 cc, and from 28 percent to 18 percent for higher capacity tractors. Sh. Nayab Singh Saini said this progressive step would encourage farmers to adopt modern machinery and accelerate farm mechanisation.
Push for clean energy and textiles
The Chief Minister said that the solar and renewable energy equipment will now attract only 5 percent GST, down from 12 percent. This, he noted, will cut project costs and promote sustainable, eco-friendly energy. In textiles, key inputs like yarn and fabric will see GST reduced from 12 percent to 5 percent, while sewing machines will attract just 5 percent instead of 18 percent. These measures will cut production costs, strengthen small and medium enterprises, and generate more jobs, he said.