AP Assembly passes resolution congratulating PM on GST 2.0

Amaravati: The Andhra Pradesh Legislative Assembly on Thursday passed a resolution congratulating Prime Minister Narendra Modi on ushering in next generation reforms in the indirect taxation regime of GST. Chief Minister N Chandrababu Naidu read out the resolution in the House, appreciating PM Modi for GST rate rationalisation and noted that this reform will benefit the common man and help achieve double-digit growth in the country. "The Andhra Pradesh Legislative Assembly conveys its warm appreciation and heartfelt congratulations to the Prime Minister of India Narendra Modi on the landmark decisions taken by the 56th GST Council regarding GST rate rationalisation," said the resolution.

Chandrababu Naidu later hailed GST 2.0 reforms for its simplicity in having reduced multiple taxes and cesses to just two slabs, “benefiting 140 crore people across the country”.

Addressing the Andhra Pradesh Legislative Assembly during a discussion on the resolution on GST 2.0 reforms, he highlighted that Andhra Pradesh is the first state in the country to deliberate on such a resolution.

Recalling the earlier complex tax structures like CST and VAT, the Chief Minister said there were once 17 types of taxes and 13 types of cesses and surcharges. Even ancillary products used to attract multiple taxes. “Now, with GST 2.0 reforms, the tax system has been simplified with just two slabs, benefiting 140 crore people across the country,” he observed.

Observing that not everyone can make bold reforms, Naidu singled out PM Modi as one such person who effected such changes, right from the time he was the chief minister of Gujarat and now as the prime minister. Eulogising the PM, the Chief Minister said: “Modi is the right leader in the right place at the right time for India”, adding even the US is reestablishing relations with India.

He said the cut in GST from 28 per cent to 12 per cent and from 18 per cent to zero per cent on some essential commodities indicates the Prime Minister's commitment to protect the interests of the common man.

Naidu described the implementation of Next-Gen GST as a “game changer” for India, pointing out that it would not only increase government revenue but also ensure welfare and development. “Without wealth creation, there can be no welfare,” he remarked. He welcomed the Centre’s reforms, appreciating that they were announced ahead of festive seasons like Dasara and Diwali, bringing relief to the public.

The TDP supremo stated that taxpayers under GST rose to 1.51 crore today from 65 lakh in 2017, logging an indirect tax revenue of Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in FY18. In this process, Naidu said indirect taxpayers rose by 132 per cent while gross GST receipts increased by 207 per cent. Calling the GST reforms a victory of cooperative federalism, he said it was achieved through unanimous consensus by all states and political maturity and deftness exhibited by the NDA government at the Centre.

According to him, 99 per cent of goods now fall under the 5 percent tax slab, directly benefiting poor and middle-class people. The reforms have increased the number of taxpayers to 1.51 crore and boosted GST collections to Rs 22 lakh crore. “The principle of ‘One Nation – One Tax’ is being implemented effectively, yielding tangible benefits,” Naidu observed, adding that the reforms would position India as a double-digit growth economy on the global stage.

Detailing sector-wise advantages, he said that essential items like soaps, toothpaste, shampoos, and ghee now attract only 5 per cent GST. Prices of appliances such as ACs and refrigerators have come down significantly. Life and health insurance premiums have been reduced to 0 per cent GST, saving Andhra Pradesh around Rs 750 crore through the Universal Health Policy. Agritech equipment now comes under lower tax brackets, supporting farmers. Construction materials are in the 5 per cent slab, boosting the real estate sector. Electronics have also become more affordable for common households.

Highlighting that the reforms will give a massive consumption boost, Naidu said the historic tax cut will inject nearly Rs 2 lakh crore into the Indian economy, which is equal to fourfold allocations made to the Pradhan Mantri Awas Yojana and 10 times to Production-linked Incentive (PLI) scheme. Naidu said the reform will usher in a virtuous cycle of growth powered by lower taxes, more spending, higher production, rise in employment and will create a wider tax base.

Emphasising inclusivity, Naidu said the benefits of GST reforms must reach every citizen. “From the richest to the last person in society, everyone should be aware of these advantages,” he underlined. The coalition government too is planning state-wide awareness programmes to educate the public about the positive impact of these reforms. A Cabinet sub-committed will take it forward, he mentioned.

Expressing concern over the absence of YSRCP MLAs for the Assembly session, the chief minister said that political parties should extend cooperation for the benefit of society. The absence of YSRCP MLAs to welcome the GST reforms was unfortunate, he said.