Chandigarh, September 6– Haryana Chief Minister, Nayab Singh Saini 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,’ Nayab Singh 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 today, 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 fueling demand during the upcoming festive season.
Nayab Singh 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.’
*Two standard GST rates introduced*
The Chief Minister said that India will now have only two standard GST rates i.e 5 percent and 18 percent. The previous 12 percent and 28 percent 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.
The Chief Minister said the registration process has been simplified, enabling automatic registration within three days for low-risk applicants, with system-based provisional refunds to be issued within set timelines.
*Relief for farmers and agriculture*
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 percent to 5 percent. 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 said that the Council also lowered GST on irrigation and tillage machinery from 12 percent to 5 percent, reducing equipment costs. Bio-pesticides and fertilizer inputs like ammonia, sulphuric acid, and nitric acid will now attract only 5 percent GST, promoting sustainable agriculture, he informed.
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.
*Push for clean energy and textiles*
The Chief Minister said that the solar and renewable energy equipment will now attract only 5 percent 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 percent instead of 18 percent. These measures will cut production costs, strengthen small and medium enterprises, and generate more jobs, he said.
*Healthcare made more affordable*
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 percent. GST on health and life insurance has also been reduced from 18 percent 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 Sh. Nayab Singh Saini.
*Relief for middle-class buyers*
The Chief Minister said that in a major relief for consumers, GST on small cars with petrol engines up to 1200 cc and diesel engines up to 1500 cc has been reduced from 28 percent to 18 percent. The same 18 percent rate will also apply to motorcycles up to 350 cc. Small cars will now become more affordable, and the automobile sector can expect a demand surge, said Sh. Nayab Singh Saini.
Similarly, the Chief Minister shared that the GST on cement has been cut from 28 percent to 18 percent, reducing construction costs and making housing and infrastructure development more viable in Haryana. On the other hand, GST on harmful products like tobacco, pan masala, and cigarettes has been raised to 40 percent, with the compensation cess continuing. The same higher slab will apply to sugary aerated drinks and caffeinated beverages, he said.
Nayab Singh Saini said the move aims to curb harmful consumption while generating higher revenues for public welfare.
In 2024-25, Haryana Ranked 5th Among Leading States in Gross GST Collection
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 percent.
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 percent.
Chief Principal Secretary to Chief Minister, Sh. Rajesh Khullar, Excise and Taxation Commissioner Sh. Vinay Pratap Singh, Director General, Information, Public Relations, Languages and Culture Department Sh. K. Makrand Pandurang and Media Secretary to Chief Minister, Sh. Praveen Attrey remained present on this occasion.
