Haridwar, Sep 4 : Yoga guru Baba Ramdev on Thursday welcomed the GST reforms, saying that the wide-ranging tax cuts mark a major stride towards realising the vision of 'Viksit Bharat'.

He asserted that the changes will boost production, accelerate the economy, and increase people's savings.

The GST Council has approved sweeping reforms in the indirect tax regime, reducing the number of slabs and cutting rates on several essential goods and services.

Under the new structure, only two primary slabs of 5 per cent and 18 per cent will remain, along with a higher 40 per cent rate for sin goods. Officials said the new structure will leave more disposable income in the hands of citizens, which the government expects will feed back into the economy and spur growth.

Several items, including groceries, footwear, textiles, fertilisers, and renewable energy products, will now become cheaper. Goods earlier taxed at 12 per cent and 28 per cent will largely be moved into the two main slabs, easing the burden on households.

Speaking to reporters, Ramdev, also the founder of Patanjali, said, "Prime Minister Narendra Modi has taken a major step by cutting GST for consumers, citizens, and households. This significant move will boost production, accelerate the economy, and increase people's savings. As savings rise, people will be able to afford more of their essential needs."

He highlighted that GST on essential items, especially on daily-use items, has been reduced, calling it a "very historic step".

Ramdev acknowledged that there could be a "loss of GST of lakhs of crores of rupees" but maintained that India would compensate for it through growth.

The council has also approved a 40 per cent tax rate for sin and luxury goods, increasing it from the current 28 per cent, effective September 22. The GST 2.0 reform consolidated taxes into primarily two slabs of 5 per cent and 18 per cent, while items such as tobacco, sugary drinks, and high-end vehicles were moved up to the 40 per cent bracket.

Reacting to this, Ramdev said, "One good thing is that all the harmful items in this, especially tobacco, alcohol, etc., will be reduced to 40 per cent. It was put in the SI, so except for the narcotics, some luxury cars, etc., the rest of the GST was divided into two parts. This is a very good thing, so it will also solve the accounting problems of many kinds."

He linked the reforms to the Prime Minister's broader vision for the country.

"The way India is a growing economy of the world, and the Prime Minister of the country has a dream of making Viksit Bharat, with this, India will move ahead in that direction. We thank the Prime Minister of the country for this," he said.

Ramdev also assured that Patanjali would pass on the benefits of GST cuts to consumers.

"I also assure on behalf of Patanjali as a company that from ghee to biscuits to soap, shampoo, toothpaste and all the products, because there is hardly any product that is not made by Patanjali in daily life, whatever steps we can take for all the products from reducing the rates to providing benefits to the customers, we will take these steps very soon and will benefit the consumers through this. Because for us the country is not a market, it's a family," he added.

/IANS