Darjeeling MP Raju Bista welcomes landmark GST reforms, calls it a step towards inclusive growth

Darjeeling Member of Parliament Raju Bista has welcomed the major changes announced in India’s Goods and Services Tax (GST) system, describing them as a landmark step that will make the tax structure simpler and more beneficial for common citizens, businesses, and farmers. The reforms, announced during the 56th GST Council meeting held in New Delhi on September 3, 2025, were praised by Bista as a strong example of Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman’s “visionary leadership.”

The new structure, which Bista referred to as “Simple Tax,” will replace the earlier five-slab system with just three categories—5% for essentials, 18% as the standard rate for most items, and 40% for de-merit goods such as tobacco. The existing 12% and 28% slabs have been removed. The decision also expands the list of items exempted from GST, especially life-saving medicines, medical devices, and insurance policies.

Bista said that this reform will ease tax compliance, reduce household expenses, and encourage investments across multiple sectors. “These measures will not only reduce the financial burden on families but also boost economic growth. It will help every section of society, from urban households to farmers in rural areas,” he said in his statement.

One of the most significant moves has been the removal of GST on life and health insurance policies, including senior citizen and family floater plans. Bista said this will make insurance more accessible and could push coverage in India from the current level of below 20% to nearly 50%. According to him, families could save between ₹10,000 and ₹20,000 annually on medical expenses, while also reducing India’s high share of out-of-pocket health spending. He added that lowering taxes on daily healthcare products and life-saving medicines will help crores of families who often struggle with high treatment costs.

The reforms are also expected to bring relief to households by reducing GST on daily essentials such as hair oils, butter, ghee, toothpaste, bicycles, and kitchenware. Taxes on consumer durables such as air conditioners, washing machines, televisions, and automobiles have also been reduced. Bista noted that this will directly benefit middle-class families, while also helping India’s consumer market grow stronger. He estimated that households could end up with a surplus of around ₹5,000 every month, which will likely be spent in local markets and add nearly 1–2% to the country’s GDP.

Farmers, too, stand to gain from the reforms. GST on agricultural machinery like tractors, harvesters, irrigation systems, and micronutrients has been reduced. Bista said this would lower input costs, boost rural productivity, and help increase farmer incomes by up to 13%. He added that around 12 crore farmers across India would benefit from these measures.

Housing and infrastructure have also received a push. The tax on cement has been reduced from 28% to 18%, which Bista said will help make housing more affordable and speed up construction activities. Similarly, small businesses, artisans, and workers in the MSME sector will gain from lower GST on handicrafts, marble, and other products. “This decision will benefit around 11 crore workers employed in MSMEs and give a fresh boost to local industries,” Bista said.

He further highlighted the government’s focus on renewable energy. The reduction of GST on solar panels and other renewable energy devices to 5% will not only support India’s climate goals but also encourage the adoption of clean and affordable energy in rural and urban households alike.

The GST reforms are not limited to tax rates alone. Bista pointed out that process reforms such as automated refunds and the establishment of the GST Appellate Tribunal (GSTAT) will improve transparency, attract foreign investments, and generate new employment opportunities.

“These changes will bring India closer to the goal of becoming a $5 trillion economy. The reforms are multi-sectoral and citizen-centric. They will simplify doing business, reduce the burden on common people, and make India’s economy more inclusive,” Bista stated.

He commended the GST Council and reiterating that these reforms are a turning point in India’s economic journey. “This is a step towards making India a stronger, fairer, and more prosperous nation that looks after every section of its society,” he said.