Chief Minister Yogi Adityanath said that the recent Goods and Services Tax (GST) reforms announced by Prime Minister Narendra Modi on Independence Day have already started showing results. This has brought tangible benefits for the common man, traders, and industries. Addressing a press conference in Lucknow, UP CM Yogi highlighted that the revised GST slabs would not only ease the burden on households but also stimulate India’s economic growth, particularly in Uttar Pradesh.
The CM explained that since the rollout of GST in July 2017, multiple indirect taxes such as VAT, sales tax, excise duty, and entertainment tax had been merged into a single framework under the “One Nation, One Tax” system. Earlier, GST had four slabs of 5 per cent, 12 per cent, 18 per cent, and 28 per cent, but these have now been streamlined into just two slabs of 5 per cent and 18 per cent. While luxury items will continue to be taxed at 28 per cent with a 40% cess, the shift of several goods from the 28 per cent bracket to lower rates is expected to provide major relief to ordinary citizens.
CM Yogi also said the tax reforms will give a boost of nearly Rs 2 lakh crore to the economy and raise GDP by 0.2 to 0.3 percentage points in the coming time. He emphasized that reducing GST on everyday items such as kitchen essentials, housing construction materials, and agriculture equipment will directly benefit millions of families.
Benefits for Farmers and Rural Economy
One of the biggest highlights of the reforms is the reduction of GST on tractors, tyres, pesticides, and irrigation equipment. CM Yogi said these changes would bring relief to farmers while also giving a major push to rural economic activities. Lower input costs are expected to increase farm productivity and enhance rural purchasing power. He also highlighted that the removal of GST from insurance linked to life and health policies would make medical treatment more affordable and accessible for common citizens. “This will significantly ease the financial burden on families while improving healthcare coverage across the state,” he said.
Relief for Households
For households, everyday essentials such as soaps, toothpaste, shampoo, detergents, and baby products have either been exempted entirely from GST or shifted to the lower 5% slab. This, Adityanath said, will reduce household expenses, strengthen purchasing power, and boost demand in the consumer goods market. He added that this was in line with Prime Minister Modi’s larger vision to ensure that economic reforms are not just about numbers but about directly improving the lives of ordinary people.
Expansion of Infrastructure and Industry
The CM highlighted that along with GST reforms, Uttar Pradesh has been witnessing massive growth in infrastructure. “Since 2017, seven new expressways have been constructed, with more underway. Work on 21 airports has been completed, and today we are moving towards building a robust air network that will connect even smaller districts,” he said.
Airports at Jewar (Noida International), Kushinagar, and Ayodhya are among the projects shaping UP as an aviation hub. Gautam Buddha Nagar airport, which will be India’s largest, is expected to be operational by the end of this year.
Additionally, the UP government has promoted One District One Product (ODOP) industries by reducing GST on their products. Items like Banarasi sarees, Chikan embroidery, brassware, and glassware representing UP’s traditional handicrafts have been placed under the lower 5% GST slab, giving artisans a competitive edge in both domestic and export markets.
Rising Tax Revenue and Compliance
The Chief Minister pointed out that tax collection has increased significantly since GST implementation. “India’s tax collection was just Rs 7 lakh crore before the introduction of GST. Today, it has surged to Rs 22.8 lakh crore. The number of taxpayers has risen from 6.5 million in 2017 to 15.1 million now,” he said.
He added that revenue from VAT and sales taxes was only Rs 49,000 crore in 2017 but has now increased to Rs 1.5 lakh crore, excluding the central government’s share. “This shows how GST has simplified compliance, expanded the taxpayer base, and created a stronger financial system,” he explained.
The CM also noted that direct benefit transfer (DBT) payments had grown exponentially from Rs 7,000 crore in 2014 to over Rs 6.83 lakh crore today lifting millions of people above the poverty line.
Security for Traders and Insurance Relief
The government has also introduced measures to support traders. Through the Traders Welfare Board, tax registrations have been encouraged, and a security insurance cover of Rs 1 lakh has been offered to tax-paying traders. So far, over Rs 152 crore in insurance claims has been distributed to 1,063 families.
Boost to ODOP and Small Industries
The CM emphasized that the ODOP initiative will be a major gainer from GST relief. Synthetic menthol, previously taxed at 18%, has now been reduced to 5%. Since UP is the world’s largest producer of menthol, this reform will directly benefit farmers and traders, while also creating opportunities for exports. Similarly, other ODOP products like handloom sarees, handicrafts, and local food items have been placed under the reduced tax slab, offering traditional industries a major boost.
Calling GST reforms historic, Adityanath said they would expand consumption, increase savings, and fuel growth across all sectors. He stressed that the reforms would particularly benefit middle-class families, farmers, small traders, and artisans groups that form the backbone of India’s economy.
CM Yogi concluded by saying that Uttar Pradesh was fully aligned with Prime Minister Modi’s vision of a developed India. With GST reforms, infrastructure expansion, and industrial growth, the state is emerging as a powerful driver of the national economy.
