Industry Leaders Hail GST Reforms As Transformative Step

India announced sweeping GST rate cuts on Wednesday, slashing taxes on hundreds of consumer items, from soaps to small cars, in the most comprehensive indirect tax reform since GST’s rollout in 2017.

The 56th GST Council reduced the slabs from four to two: 5% for essentials and 18% for non-essentials, while imposing a 40% rate on sin and luxury goods. The Council also scrapped the compensation cess mechanism.

Radhika Gupta, MD & CEO of Edelweiss AMC, called the reform ‘an extremely progressive step’ that would lift demand and sentiment.

“When the world pushes us into a corner, we push ourselves to fight back harder,” she said.

Mahindra Group Calls for More Reforms

Anand Mahindra, Chairman of Mahindra Group, said the reforms mark India’s entry into a bigger economic battle.

“Faster reforms will unleash consumption and investment, expand the economy, and amplify India’s voice globally,” he noted, invoking Swami Vivekananda’s call to ‘Arise, awake, and stop not till the goal is reached’.

Group CEO & MD Anish Shah added that the reforms create a simpler, fairer system.

“They expand affordability, energise consumption, and encourage investment with greater confidence,” he said.

RPG Group Sees ‘Big Diwali Gift’

RPG Group Chairman Harsh Goenka described the GST cut as ‘a big Diwali gift for every Indian’.

He highlighted cheaper groceries, relief in healthcare, affordable education, and support for farmers.

“This is a step towards a ‘Next-gen GST’ that eases living and boosts the economy,” he said.

Sanjiv Goenka, Chairman of RP-Sanjiv Goenka Group, also welcomed the reforms, crediting Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for an inclusive growth strategy.

Auto Industry Welcomes Relief

CS Vigneshwar, President of FADA, said the reforms are a ‘watershed moment’ for India’s automobile retail industry.

“Lower rates for mass mobility will boost affordability, spur demand, and strengthen India’s mobility ecosystem,” he said.

Arnab Banerjee, MD & CEO of Ceat Ltd, said reduced GST on tyres will cut costs for customers across commercial, agricultural, and passenger segments.

“The reform supports rural mobility by lowering input costs for farmers,” he added.

Unsoo Kim, MD of Hyundai Motor India, said the overhaul aligns with the government’s Viksit Bharat vision and Make in India.

“Notably, 60% of Hyundai’s ICE portfolio now falls under the 18% slab,” he stated.

Saurabh Agarwal, Partner & Tax Leader at EY India, noted that rationalisation for vehicles and components would simplify long-standing classification disputes while boosting affordability.

Insurance Sector Sees Consumer Benefit

Samir Shah, CFO of HDFC Ergo General Insurance, said exempting individual health insurance from GST would advance the regulator’s Insurance for All by 2047 goal.

He added, “Premiums may come down, though the extent will depend on input tax credit availability.”

Across sectors, leaders agreed that the GST rationalisation will strengthen consumption, simplify compliance, and enhance affordability. They called it a defining moment in India’s journey toward a more inclusive and growth-oriented tax system.

Also Read: Govt Cuts GST On Dairy Products To Boost Rs 19 Lakh Crore Industry