Chief Minister Yogi Adityanath stated on Thursday that Uttar Pradesh will be the primary beneficiary of the newly introduced GST reforms. He attributed this to the state’s extensive consumer base, rapid infrastructure development, and flourishing manufacturing sectors. Adityanath emphasized that these tax modifications will significantly benefit farmers, local industries, and job creation, facilitating the state’s transition from a ‘BIMARU’ status to a prosperous region. He expressed gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the “transformative” reforms. During a press conference, Adityanath highlighted that as the most populous state, Uttar Pradesh represents the largest consumer market in the country.
“UP’s infrastructure has advanced remarkably; six cities now have metro rail services, 16 airports are operational, and by the end of this year, the nation’s largest airport will also commence operations,” he remarked. He noted that Uttar Pradesh has three crore farmer families who stand to gain significantly as the costs of agricultural equipment and other inputs will decrease under the new GST framework. “This will enable farmers to purchase more at lower costs,” the Chief Minister stated. He also pointed out the advantages for the state’s footwear and garment sectors, with GST on footwear priced up to Rs 2,500 now set at five percent and a reduction in GST on ready-made garments.
“Agra and Kanpur are major centers for footwear manufacturing. This will not only support the industry but also enhance employment opportunities,” he added. Adityanath mentioned that the One District One Product (ODOP) initiative will also receive a boost from the GST reductions, promoting local manufacturing and job growth. He further noted that in the past eight years, Uttar Pradesh has adhered to the FRBM limit while transitioning from a ‘BIMARU’ state to one of the fastest-growing economies in the country. “The GST Council has introduced tax rebates and reforms that will take effect from September 22. This is PM Modi’s Diwali gift to the people,” Adityanath stated.
He explained that prior to the introduction of GST in July 2017, honest taxpayers faced challenges due to high tax rates and cess, along with a lack of a cohesive taxation system. “GST unified these taxes under the principle of ‘one nation, one tax’, resulting in a notable increase in GST registrations and direct economic advantages,” he added. CM Adityanath asserted that the new reforms have streamlined the structure into just two primary tax slabs—five percent and 18 percent—which will benefit the general public, farmers, and all sectors. “These reforms are projected to inject Rs two lakh crore into the economy,” he said, noting that essential household items will now carry zero percent GST.
“For farmers, GST on agricultural equipment has been reduced to five percent, which will help lower expenses and enhance the agricultural economy,” he concluded.