India’s corporate sector has strongly endorsed the Goods and Services Tax (GST) Council’s decision to compress rates into two main slabs, 5 per cent and 18 per cent, from September 22.
The reforms, which also exempt individual life and health insurance premiums from GST, are being described as a decisive step towards predictability and ease of doing business.
Industry associations said the changes would simplify refunds, improve compliance, and reduce disputes, offering much-needed clarity for businesses and consumers alike.
CII Director General Chandrajit Banerjee called the GST revamp a ‘phenomenal milestone’ that lowers rates on everyday items and critical inputs.
“This reform gives immediate relief to households while strengthening the base for future growth,” he said.
Hemant Jain, President of PHDCCI, said the rationalisation would ease household budgets and boost demand by cutting rates on essentials such as toiletries, packaged foods and utensils to 5 per cent from higher brackets.
“It is a landmark move addressing both consumer welfare and revenue efficiency,” he added.
Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry, welcomed the alignment of man-made fibre and yarn at a unified 5 per cent GST.
“This addresses a long-standing blockage of working capital for thousands of spinners and weavers. With 70–80 per cent of textile and apparel units being MSMEs, the reform will ease liquidity pressures and enhance competitiveness,” he said.
In the hospitality sector, FHRAI President K Syama Raju praised the simplification of hotel tariffs into two slabs of 5 per cent and 12 per cent.
He said the change would offer clarity to operators and affordability to travellers ahead of the festive season.
Industry leaders see the reforms as part of a larger effort to reduce litigation, stabilise tax revenues and encourage consumer spending.
By rationalising rates and correcting inverted duty structures, the GST Council has signalled its intent to create a simpler, more transparent tax regime that benefits both businesses and households.
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