New Delhi, Sep 4 : Union Minister of State for Finance, Pankaj Chaudhary, on Thursday lauded the GST 2.0 reforms, calling them a "major transformation" poised to impact every segment of Indian society.

Speaking exclusively to IANS, Pankaj Chaudhary said: "A very big reform has happened. It will impact all sections of society ' whether it is the poor, middle class, farmers from any region, or even sectors like education and healthcare. Everyone is set to benefit in some way or the other.'

The revamped GST structure, which simplifies the existing four-rate system into two, is aimed at easing compliance and reducing confusion, especially for small traders and businesses.

'There was confusion earlier due to multiple GST slabs, which troubled small traders. By bringing it down to two rates, we are ensuring a more efficient and streamlined system,' he added.

Chaudhary also addressed specific tax components, including the controversial taxation on luxury goods and sin products.

'There is a view that taxes on items like cigarettes and liquor should be reduced, and there have been suggestions to reclassify them. However, for those purchasing luxury cars, a 40 per cent tax is not a burden ' which is why it remains.'

He further said that a detailed assessment of the reform's impact on GDP and revenue collections will be conducted in the coming months.

"We will analyse the GST collections post-implementation ' starting from September 22. A clear picture will emerge within a month or two," he added.

Responding to Opposition remarks, particularly from the Congress, Chaudhary dismissed claims that the reforms were reactionary.

"We were already receiving significant benefits from GST. Prime Minister (Narendra) Modi wanted to ensure that these benefits reached the common people. That's why these reforms were introduced ' not because of any political pressure," he asserted.

As the GST Council approved historical changes to India's indirect tax structure, several daily-use goods will become cheaper from September 22.

The new tax structure, adopted on Wednesday, has two major slabs now 5 per cent and 18 per cent, and a whopping 40 per cent for luxury and sin goods.

For the common man, this change means more money in hand, which the government hopes will be routed into the economy, giving it a significant boost.

From groceries and fertilisers to footwear, textiles, and even renewable energy, a broad basket of goods and services is set to become more affordable. Items previously taxed at 12 per cent and 28 per cent will now largely migrate to the other two slabs, making a wide range of products cheaper.

/IANS