PM Narendra Modi has given a festive gift to citizens by reducing GST: Krishan Lal Panwar

Chandigarh, Sept 2025 – Haryana’s Development and Panchayats Minister Sh. Krishan Lal Panwar said Prime Minister Sh. Narendra Modi has set a new milestone by implementing a reduction in GST across the country. This will fulfill the vision of Atmanirbhar Bharat and Atmanirbhar Haryana. The new GST structure will benefit all sections of society, including the poor, middle class, youth, farmers, and traders. He added that the reduction in GST during the festive season is a gift to the people by the Prime Minister.

Sh. Panwar was addressing a press conference in Jind on the Next Generation GST Reforms and GST Bachat Utsav on Tuesday. Later, he interacted with consumers purchasing vehicles at local Hero, Mahindra, Bajaj, and Swaraj agencies. Consumers expressed happiness and told the Minister that the new GST system has helped them save thousands to lakhs of rupees during the festive season, providing significant relief to the common man.

Extending greetings on Navratri, the Minister said that these festivals mark another important step towards a self-reliant India. The new generation GST system has been implemented to make business easier and investments more attractive. Due to the visionary leadership of Prime Minister Sh. Narendra Modi and the efforts of the state, the country has been freed from the web of multiple taxes and the dream of One Nation – One Tax has been realized. Being an agriculture-driven state, Haryana has been given special consideration in GST reforms, particularly in crop residue management equipment.

GST on packet milk and paneer has been reduced to zero, while on ghee, butter, and dry fruits, rates have been cut from 12% to 5%. Roti and paratha have been made completely GST-free, which will encourage traditional food businesses and boost Haryana’s food processing industry. For sustainable farming, GST on bio-pesticides and fertilizer inputs like ammonia, sulfuric acid, and nitric acid has been set at 5%, reducing input costs.

He further said that GST on tractors and tractor parts has also been reduced. Tractors below 1800 CC capacity will now attract 5% GST instead of 12%, while above 1800 CC, GST has been reduced from 28% to 18%. This move will encourage progressive farmers to adopt modern agricultural machinery and promote farm mechanization.

To support the textile sector, GST on major inputs like yarn and fabric has been reduced from 12% to 5%, and sewing machines will now also be taxed at 5%. Life and health insurance GST has been reduced from 18% to zero, lowering premium costs and providing greater financial security and affordable healthcare.

On automobiles, GST on small cars with engine capacity up to 1200 CC (petrol) and up to 1500 CC (diesel) has been reduced from 28% to 18%. Cement GST has also been cut from 28% to 18%, reducing construction costs and boosting housing and infrastructure development in Haryana.

The Minister emphasized that GST has simplified and made the tax system transparent, eliminating trade barriers between states and achieving the vision of One Nation – One Tax – One Market. In the year 2024-25, Haryana ranked 5th among leading states in terms of gross GST collection. He expressed gratitude to the Prime Minister, Union Finance Minister, and members of the GST Council, stating that their farsighted and welfare-oriented approach made these transformative decisions possible.