Wednesday, June, 03,2026

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THE GST CUTS MARK THE START OF A NEW ERA OF FINANCIAL REFORMS

The act of lowering GST rates for all Indians on Diwali 2025 is truly fantastic.

THANKS TO THE MODI GOVERNMENT

Diwali is the most auspicious festival with religious significance and plays a substantial role in the Indian economy, driving domestic consumption. Although PM Modi hinted that he would give a Diwali gift to Indian society in his address to the Nation from Lala Killa on August 15th. The GST state council’s 56th meeting resulted in a decision to decrease the current GST rates (5, 12, 18, and 28 per cent) and introduce only two GST rates. And to implement the new rates 5 & 18 percent from 22nd September 2025, i.e. the first day of the Navratri.

This GST rate revision will always be considered as a new era of Indian economic reforms. It will give the Indian economy the strength to move fast in the race for global GDP and expect to be in the top three in the next two years. The best outcome of GST implementation since 2017 is that it has significantly enhanced the Government’s revenue collection. According to a report, the revenue from GST has increased by twofold in the past five years. In the last financial year (24-25) it was around 23 Lakhs Crore Rupees. Based on this important feature, undoubtedly the rate cuts will reduce revenue significantly. And it is expecting a reduction of two lakh crore rupees to the Indian government in the current financial year.

SO WHY DID THE GOVERNMENT DO THIS?

The answer is not to dream of moving, but to actually run towards self-reliance in India and provide financial savings to all Indians.

99 percent of the items are now a 5 percent tax burden, which were previously a 12 percent slab. 90 percent of the items with the highest rate of 28 percent are now experiencing a 10 percent decrease as they have been shifted to the rate of 18 percent.

This is correct that higher tax rates have increased the cost of living in Indian society since 2017. But this move will not only increase savings, but it will also help fulfill the dreams of buying many things that were not in the capacity or range earlier, especially for a common man. It is not one-sided statements of quoiting that GST rate cuts have empowered the poor person and will take them into the mainstream of economic development. Equally, there are several reasons that make sense for GST rate cuts. One important reason is that the government expects some sort of unfavorable impact from the US tariff, which is absolutely insane and unjustified considering the current regime of the US. India’s growth in the first quarter of this financial year was 7.8 percent. To prevent a decrease in yearly growth caused by the US tariff, the Modi Government implemented GST cuts to enhance local consumption and make Indian companies more competitive in the global market. It is expected that the impact of the US tariff will be mitigated by an increase in consumption caused by GST cuts.

FEW MORE RATIONALE….

  1. Rate cuts will lower prices and increase demand.
  2. It will positively impact the profitability of all essential and employment-intensive sectors.
  3. This will be a great support for MSMEs and the manufacturing sector to enhance the Make in India dream.
  4. Now, only two rates will make compliance very low, and it will increase the tax base in society.
  5. Social protection is the primary purpose of this, especially in the healthcare and insurance sector.

THE GST SAVINGS FESTIVAL IS NOW HAPPENING...

The trends have started coming and it will naturally accelerate the growth in the economy through an increase in demand.

  • FMCG products such as soaps, powder, diapers, biscuits, ghee, and oil are now cheaper as all leading companies have slashed prices and issued revised price lists with new MRPs for their products. They have dispatched products to distributors, warehouses, e-commerce, and traditional Kirana stores, etc. The same is available for food and snacks products, such as namkeen, bhujia, sweets, coffee, tea, butter, icecream, chocolates, etc.
  • For instance, the price of a juice (1 Ltr) has been reduced by Rs 8 from Rupee 130 to Rupee 122, and Chyawanprakash has been reduced from Rupee 475 to Rupee 440. Toothpastes have been reduced to Rs. 135 from Rs. 153, and Hajmola has been reduced to Rs. 65 from Rs. 70. The price of Maggi has decreased from Rs 120 to Rs 116. Coffee from a famous brand costs Rs. 235, after slashing the price to Rs. 30. Similarly, dairy and food products, including ghee and butter, have also been reduced. Now, the butter price is Rs 58 from Rupee 62, and the ghee (1 litre) price is Rupee 610 from Rupee 650. Paneer will now cost Rupee 95 instead of Rupee 99, and the range of its ice cream will start from Rupee 9 to Rupee 10.
  • In the Health care & Wellness, thirty-three lifesaving drugs are now completely tax-free, including for cancer and all medicines are in the 5 percent slab from 12 percent. Directly, it contributes to a 7 percent savings. Medical equipment (including glucometers, diagnostic kits, surgical equipment, etc.), and wellness services such as gym, yoga, and other activities are now in the 5 percent range from 18 percent, which is indeed a great financial support to society.
  • For farmers, agricultural machinery such as tractors, harvesters, and composters are in the 5 percent range to 12 percent. Fertilizer has fallen by 5 percent from 18 percent. This will provide a financial incentive to a farmer and increase their income.
  • For Real estate, the current percentage of building materials is 18 percent, down from 28 percent earlier. It will enhance the real estate sector and increase employment as well.
  • For export promotions, a relief is given on handicrafts, marble, and leather items as the rate is now 5 percent from 12 percent.
  • Automobiles, small vehicles now get 10% benefit as GST set at 18%; all auto components to have a uniform 18% rate.
  • Student use items are completely tax-free, including exercise books, erasers, pencils, crayons, and sharpeners.
  • Staying in hotel rooms will be cheaper as the new rate is 5 percent instead of the previous 12 percent.
  • Insurance relief tops benefits as GST exemption on all life and health policies boosts savings for the lower middle class.

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL

Dr P S Vohra, The writer is Columnist & Financial Thinker

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Daily Astro

03-06-2026

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Aries

Ganesha says it will be an important day for you, Aries. Your energy and confidence are ready to take you to new heights. Today you will be able to express your thoughts with clarity, which will increase your communication skills. New opportunities may arise in the working areas, which you have to be ready to take advantage of. In social life, you can make new meetings, which will prove beneficial for you in the future. This day will be good for solving family issues, and you will be able to establish better relations with your close ones. In the field of health, take care of your routine and resort to yoga or meditation to relieve mental stress. Controlling your expenses will be a smart move, as any sudden financial need may arise. Overall, this day is for you to stay positive, just use your insight and energy properly.

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Pisces

Ganesha says it is going to be a positive day for you. Your sensitivity and intuition will flourish today, allowing you to establish better connections between yourself and others. It is time to connect with someone or refresh old memories. Try to communicate with people close to you, as it will strengthen your relationships. In the field of work, your creativity will be cyclical today. If you are working on a project, your ideas will be new and full of innovation. Do not be afraid to share your ideas, it will give you positive feedback from your colleagues. In terms of financial condition, avoid any big investments. Small expenses will prove to be justified but think well before making any big decisions for the long term. In terms of health, focus on a balanced diet and regular exercise. For mental health, practicing meditation or yoga will help keep you stress-free.

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Aquarius

Ganesha says new opportunities are likely to open up for you. You will be in a position to take your creative abilities to new heights. This is the time to share your ideas and make new plans. Your friends and family will support your ideas, so it will be beneficial to take their advice into account. Positive changes are possible in business. This is the right time to work on an important project. You will get an opportunity to use your skills and knowledge properly. But, be careful; in some cases, you will need to control your emotions. In personal life, relationships will deepen. You will try to spend more time with your loved ones. This is a good time for love and companionship. Enjoy emotional moments that will make your relationships stronger. Be health conscious. Dedication to yoga and meditation will give you mental peace. These activities will keep not only your body but also your mind active. Overall, today will be full of possibilities for you. Stay committed to your dreams and work on them.

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Capricorn

Ganesha says your day is full of some new possibilities. You will experience grace and stability in your actions. This is the time to focus on your goals and work with determination to pursue your plans. You are likely to get success in your work, especially if you maintain your hard work and dedication. Positive changes can also be seen in your relationships. You will get a chance to spend time with family and listen to them, which will increase mutual understanding and depth. Focus on communication, as it will make your relationships stronger. However, it is also time to make monthly plans. Take care of your financial matters and try to save. This is the time when you can take concrete steps for your future. Your health condition is likely to remain normal but take some rest. Maintaining a mental balance will be important for you. Stay positive and keep faith in your actions!

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Sagittarius

Ganesha says today will be full of new possibilities and positive energy for you. You will feel a rise in your confidence, which will keep you open to new opportunities. This is the right time to make an important decision. Your spirituality and intuition will be strong, which will enable you to understand and face difficulties. Spending time with friends and family will awaken a sense of happiness and satisfaction in your mind. Relationships with colleagues at work can take a new direction. Cooperation and communication will help solve problems. If you face an obstacle or challenge, remember that you can overcome it. In terms of health, you may need to make a little improvement in your routine. Regular exercise and a balanced diet will give you freshness and energy. Strengthening social relationships and contacting new people will also be beneficial today. This is the time for self-growth and positive change for you, so recognize the energy within you and use it properly.

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Scorpio

Ganesha says today will be full of enthusiasm and energy. You will move towards achieving your goals, and your hard work will pay off. Social life will also be active; you will get a good chance to spend time with friends and family. In terms of health, take a little caution. Focusing on meditation and exercise will help reduce mental stress. This is also a good time to take up a new hobby, which can unleash your creativity. Take wise steps in terms of money. Make informed decisions while investing. For potential financial gains, take a look at past projects again. Your career is showing good signs of progress. Your ideas may be appreciated at the workplace, which will increase your confidence. Still, some issues may require restraint. Overall, today will prove to be positive and auspicious for you. Spend it with pride with your loved ones.

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Libra

Ganesha says today will be a very auspicious and positive day. You will get a chance to clarify your thoughts, which will bring stability to your personal and professional relationships. Your communication skills will increase, and this will open the doors of new possibilities for you. Your creativity and aesthetic sense will be especially strong today. If you are associated with any art or design, your work will be appreciated. This is the right time to express your feelings. If you are confused about a decision, trust your intuition; it will show you the right path. In terms of health, small changes can make your life better. Focus on regular exercise and a balanced diet. In love and relationships, a new understanding will develop, which will strengthen the mutual bond even more. Overall, this day is a sign of positive changes and new beginnings for you. Stay focused on your goals and recognize your inner strengths.

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Virgo

Ganesha says today is a suitable day to highlight your cognitive abilities and business skills. Today, you will be full of clarity and precision in your actions, which will increase your value among your colleagues and superiors. There is a possibility of bringing some changes to your routine, which will bring positive results for you. This is a good time to improve relations with family members. Try to resolve any old disputes, and keep communication open. In terms of health, meditation and yoga will bring mental peace. Also, take some time out of your routine for exercise. From a financial point of view, this is the right time to make a good plan for the right investment. Take a good look at the options available to you and make a wise decision. Overall, today will prove to be a day of new possibilities and positive changes for you. Be full of confidence and stay focused on your goals.

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Leo

Ganesha says today will be a day full of energy and inspiration. Your confidence will increase and your thoughts will come out with clarity. On this day, you will be able to see some new possibilities in your career, which will bring you hard work. Mutual understanding and harmony will increase your relationship, which will create a happy atmosphere among the family. This is a great time to express your thoughts clearly, so do not hesitate to communicate with your partner or friends. It is important to be health conscious, a little exercise and meditation will maintain your mental and physical health. Overall, this day will bring activity and positivity for you, so make the most of all the opportunities!

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Cancer

Ganesha says it will be a day of information and communication for you. Your mind will be full of ideas and you will be able to express your ideas well. There is a possibility of some new opportunities in professional life, which can prove beneficial for you. It is a good time to strengthen relationships with your colleagues, so work together at the workplace. Your emotional state will also be strong. Time spent with family will give you satisfaction. If you have any old problem going on, then the right time is coming to solve it. However, you need to keep your emotions under control, so that you do not get agitated over small things. In terms of health, try to practice yoga and meditation. It will empower you both mentally and physically. Take informed decisions in financial matters; do not rush into any investments. In summary, this day will be all about communication and cooperation, which will lead to positive changes for you.

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Gemini

Ganesha says there will be a new energy and freshness in your thoughts, which will make your personality even more attractive. Social contacts are likely to increase, which will expand your network. You will be inspired to spend blissful time with your friends and family. Some positive changes can also be seen in the business sector. The results of your hard work will gradually start coming, and this will motivate you to move forward. Keep in mind that while sharing your ideology, work with empathy, this will strengthen your relationship with colleagues. It is important to be health conscious. A little attention and relaxation will give you mental freshness. Practicing yoga or meditation will be beneficial for you. This day will be full of positivity and new possibilities for you. Express your mind openly and do not hesitate to adopt new ideas.

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Taurus

Ganesha says it will prove to be a positive day for you, Taurus. You will feel energetic and full of confidence. The time has come to reap the fruits of your hard work and efforts. The workload may stress you for a while, but you will face all the challenges recognizing your strengths. Sweetness will also remain in your relationships. Spending time with your family and friends will be a source of joy for you. Conversation with someone special can give you a new vision and promote mutual understanding. A special occasion may be organized among friends or family, which will bring happiness and harmony to you. Moments spent with loved ones will give you mental peace. It is important to be health conscious. A little exercise or yoga will give peace to your mind and energy to your body. Your day will be full of happiness and positivity, just keep your thoughts and emotions balanced.

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03-06-2026