TDP welcomes Centre’s decision to rationalise GST, reduce levies

The Telugu Desam Party (TDP) has welcomed the Centre’s decision to rationalise the GST tax slabs and reduce levies on essential goods and services, terming it a ‘watershed reform that promises tangible relief to the poor, the middle class, farmers and small businesses’.

In a statement on Thursday (September 4, 2025), TDP Andhra Pradesh unit president Palla Srinivasa Rao described the measures announced by the Centre at the 56th GST Council meeting as the ‘Diwali gift to all households’ across the country.

“By easing indirect tax burden, the Centre has extended a strong assurance for the future of the poor and the middle class,” he said.

The four-tier GST slabs have been reduced to two slabs of 5% and 18%, with several daily consumption items moving to the lower tax slab.

Ultra-high temperature milk, paneer and bread have been exempted from GST, Mr. Rao said, adding that it would ease the cost of living.

Significantly, 33 life-saving drugs will attract zero GST, while the same on several other medicines has been reduced to 5%. Three critical drugs for cancer and other severe ailments will now attract zero tax. “This is a milestone for public health. Families battling chronic illnesses will get the much-needed respite,” he said.

The exemption of GST on personal life and health insurance policies — including family floater and senior citizen schemes — is expected to bring financial protection within the reach of millions. Education has also been exempted from GST, making learning more affordable, Mr. Rao said.

GST on farm equipment has been reduced from 12% to 5%, providing support to farmers. Lowering of GST on cement and steel from 28% to 18% is expected to spur real estate and infrastructure activity, generating wider economic momentum.

“These reforms will not only reduce household expenditure but also stimulate consumption, bolster domestic markets, attract investment, thereby widening the arc of national economic growth,” Mr. Srinivasa Rao said.

Recalling the TDP’s founding ethos of championing the welfare of farmers, workers and the middle class, Mr. Srinivasa Rao asserted that the Centre’s decision resonated with those very priorities. He expressed gratitude on behalf of the TDP to Prime Minister Narendra Modi, Union Finance Minister Nirmala Sitharaman and the GST Council for what he called a “historic intervention in the economic life of the nation.”