CM Yogi Adityanath hails new GST rates effective from September 22 as a Diwali gift for the public. Calls it Next Gen GST, predicts boost in UP’s GDP, job creation, and major relief for farmers, MSMEs, and consumers.
Uttar Pradesh Chief Minister Yogi Adityanath has welcomed the Central Government’s newly revised GST rates set to be implemented from September 22, 2025, calling them a “Next Gen GST” and a “Diwali gift for the common man.” Expressing gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, the CM stated that the new tax regime will not only ease the burden on the public but also strengthen India’s and UP’s economy.
Speaking to the media on Thursday, CM Yogi Adityanath said that the biggest benefit of the revised GST slabs will go to Uttar Pradesh, as it is India’s largest consumer state. The simplified tax structure is expected to contribute to an increase of 0.2 to 0.3% in the state’s GDP, he added.
Two GST Slabs Instead of Five- CM Yogi Adityanath
Highlighting the GST reform, the CM Yogi Adityanath pointed out that when GST was first rolled out in July 2017, it had five tax slabs. Now, the structure has been streamlined to just two main slabs – 5% and 18%, with a separate 40% rate for luxury goods. This simplification will make tax compliance easier and reduce confusion among businesses and consumers alike.
He further stated that the inclusion of essential everyday items such as milk, curd, paneer, shampoo, toothpaste, soap, cycles, and children’s products under 0% to 5% GST will offer direct financial relief to households.
Boost for Farmers and MSMEs
The new GST structure is expected to significantly benefit farmers and small industries in Uttar Pradesh. Products like synthetic menthol will now be taxed at 18%, while organic menthol will only attract 5% GST. This change is likely to promote the menthol farming sector, which is a major source of income in UP.
Industries such as footwear, readymade garments, peppermint, and ODOP (One District One Product) will also gain from the reduced tax rates. For example, readymade garments and footwear under ₹2500 will now attract only 5% GST, aiding both manufacturers and consumers.
Major Economic Growth Expected
Yogi Adityanath highlighted that Uttar Pradesh’s tax revenue has seen substantial growth since GST’s introduction. The state’s revenue from VAT and Sales Tax stood at ₹49,000 crore before 2017, which has now increased to ₹1.15 lakh crore. He credited this growth to the state’s expanding infrastructure, including expressways, metro projects, and airports, all supported by efficient tax reforms.
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Relief to Domestic Consumers
With reduced GST on daily-use items, consumers will save more and spend more, which in turn will stimulate the economy. The CM projected a ₹2 lakh crore increase in India’s GDP as a result of the new GST rates.
He also mentioned that the leather industry in Agra and Kanpur, which had long demanded tax rationalization, will benefit significantly from the reduced GST on footwear.
Job Creation Through Traditional Industries
The Chief Minister emphasized that the revised GST regime will provide a major push to traditional crafts and local industries under the ODOP scheme. Iconic products like Banarasi sarees, Lucknowi chikankari, Bareilly’s zari-zardozi, Jalaun’s paper crafts, and Firozabad’s glassware will now attract only 5% GST, making them more competitive and affordable.
This move is expected to boost production, demand, and exports, leading to large-scale employment generation across the state.
One Nation, One Tax – Further Strengthened
Calling it the biggest GST reform since its inception, Yogi Adityanath reminded that GST replaced a complicated array of taxes like VAT, Sales Tax, Excise, Service Tax, Entry Tax, and Entertainment Tax in 2017, bringing in the “One Nation, One Tax” vision. This latest reform continues that journey, aiming to empower common citizens, traders, and MSMEs alike.