Haryana Chief Minister Nayab Singh Saini has said that the Goods and Services Tax (GST) reforms announced by Prime Minister Narendra Modi from the ramparts of the Red Fort on Independence Day 2025 have been implemented within just a month.
Calling it ‘proof of Modi’s guarantee, which is always fulfilled,’ Saini described the reforms as a milestone towards building an Atmanirbhar Bharat. He added that the changes would also play a key role in realising the Prime Minister’s call for swadeshi and ‘Make in India.’
Addressing a press conference here on Saturday, the Chief Minister said that the 56th meeting of the GST Council, held on September 3, 2025, took several important decisions aimed at easing the burden on citizens, supporting businesses, and strengthening the economy.
Calling the decisions ‘welcome steps,’ he said rationalisation of GST rates would make essential consumer goods cheaper, boosting middle-class savings and fuelling demand during the upcoming festive season.
Saini said that GST has simplified and made the taxation system more transparent. It has also removed barriers to trade between states and has realized Prime Minister Sh. Narendra Modi’s vision of ‘One Nation – One Tax – One Market.’
The Chief Minister said that India will now have only two standard GST rates, i.e, 5 percent and 18 per cent. The previous 12 per cent and 28 per cent slabs have been scrapped, while a special 40 percent rate has been retained for ‘demerit’ goods.
The Chief Minister said that the simplified classification would certainly reduce disputes and litigation, while lowering GST rates on commonly used goods and abolishing the cess would directly ease household expenses. The inverted duty structure on textiles and fertilizers has also been removed, reducing working capital blockages for dealers, he shared.
Highlighting that the reforms primarily take into account farmers’ interests, the Chief Minister said that Haryana, being an agrarian state, had urged the Council to reduce GST rates on agricultural equipment used for crop residue management, a request that was accepted. He expressed gratitude to the Union Finance Minister, Smt. Nirmala Sitharaman for this.
The Chief Minister said that packaged milk and cheese have been made GST-free, while rates on ghee, butter, and dry fruits have been cut from 12 per cent to 5 per cent. Roti and paratha have been exempted entirely. These steps, he said, will not only reduce inflation but also encourage traditional food businesses, strengthen food processing in Haryana, boost farmers’ value addition, and create rural jobs.
The Chief Minister shared that for tractors, the GST rate has been reduced from 12 percent to 5 percent for engines below 1800 cc, and from 28 percent to 18 percent for higher capacity tractors. Sh. Nayab Singh Saini said this progressive step would encourage farmers to adopt modern machinery and accelerate farm mechanisation.
The Chief Minister said that the solar and renewable energy equipment will now attract only 5 per cent GST, down from 12 percent. This, he noted, will cut project costs and promote sustainable, eco-friendly energy. In textiles, key inputs like yarn and fabric will see GST reduced from 12 percent to 5 percent, while sewing machines will attract just 5 per cent instead of 18 per cent. These measures will cut production costs, strengthen small and medium enterprises, and generate more jobs, he said.
The Chief Minister said that essential life-saving drugs have been made GST-free, while diagnostic kits such as glucometers and reagents will now attract just 5 per cent. GST on health and life insurance has also been reduced from 18 per cent to zero, cutting premiums and improving financial protection for families. These measures will lower treatment costs significantly and offer direct relief to patients in need of special care, said Saini.
The Chief Minister said that since 2017, continuous efforts have been made to simplify and rationalize the GST framework. This has expanded the tax base in Haryana and led to a significant rise in GST collections. Haryana’s net SGST collection increased from Rs 18,910 crore in 2018-19 to Rs 39,743 crore in 2024-25, marking a growth of 110 per cent.
Despite its relatively smaller population and size, Haryana has emerged as one of the leading tax-collecting states in the country. In 2024-25, Haryana secured the 5th position among major states in terms of total gross GST collection. For the financial year 2025-26, Haryana’s net SGST collection is growing at an impressive rate of 20 per cent.