GST 2.0 to boost consumption, add Rs 20 lakh crore to GDP; benefits meant for people, says Vaishnaw

NEW DELHI: Union Minister Ashwini Vaishnaw on Saturday said that the GST reforms will not only provide a significant boost to the Indian economy, but will also greatly benefit the common people. During a press conference at the BJP central office, he lashed out at the previous Congress-led UPA government, claiming that the heavy burden of taxes during its tenure had negatively impacted peoples lives. Prior to 2014, a complex system of multiple taxes applied to every item, placing a heavy burden especially on common and middle-class families, the minister remarked. He further stated that Indias GDP is approximately Rs 330 lakh crore, of which nearly Rs 202 lakh crore comes from consumption. He added that following the GST reforms, consumption is expected to rise by 10%, thereby adding Rs 20 lakh crore to the nations GDP. Describing the GST reforms as a major gift from Prime Minister Narendra Modi, the Minister said that the PM had delivered historic reforms in GST aimed at benefiting middle-class families. Just as a major reform in income tax provided relief to middle-class families on income up to Rs 12 lakh, now, through comprehensive reforms in GST, the PM has given middle-class families a significant relief and gift, he said. Reiterating his criticism of the former UPA government, the Minister stated that prior to 2014, a complex system of multiple taxes applied to every item, placing a heavy burden especially on middle-class families. GST 2.0 to add 10% to GDP The minister said that `202 lakh crore comes from consumption, following the GST reforms, consumption is expected to rise by 10%, adding Rs 20 lakh crore to GDP.