GST Reforms Offer Relief to Traders and Industrialists Across India

Recent reforms in the Goods and Services Tax (GST) structure in India have garnered widespread approval from industrialists and traders. Business leaders highlight that these changes will benefit both the business community and everyday consumers. The reforms aim to simplify the tax structure, making essential items more affordable and accessible.

Industrialists Praise Simplification of GST

Gulshan Dang, the Haryana state president of the Rashtriya Jan Udyog Vyapar Sangathan, expressed optimism about the changes, stating they would relieve both traders and the general public. He noted that the previous GST design, featuring multiple tax slabs, was overly complex and should not have been implemented in the first place. “We have been raising our voices against the GST design and rate structure for the past eight years. It is unfortunate that it took so long, but we welcome the fact that our demands have finally been accepted,” he said.

The new reforms introduce reduced GST rates on commonly used items such as soap, bicycles, televisions, and health and life insurance policies. Dang characterized these changes as the most significant adjustment to India’s tax system since GST’s introduction in July 2017. He emphasized that simplified tax slabs would enhance cost estimation and bolster investor confidence.

Despite these positive changes, Dang urged the government to address ongoing issues with server downtime on the GST portal. “Only then will the full benefits of GST reforms reach the people,” he added.

Footwear Industry Sees Much-Needed Relief

Narendra Chhikara, an industrialist and senior vice-president of the Bahadurgarh Footwear Park Association, described the recent GST reforms as essential for revitalizing the footwear industry nationwide. Chhikara noted that the industry had been advocating for a reduction in GST rates for three years, and their persistent efforts have finally borne fruit.

He recalled that in January 2022, the GST rate on footwear was increased from 5 percent to 12 percent, negatively impacting the sector. This increase not only affected manufacturers and retailers but also led to price hikes for consumers, resulting in a 25 percent drop in sales. The decision to restore the 5 percent GST rate on footwear priced up to Rs 2,500 is expected to significantly boost demand and support the industry’s growth trajectory.

The recent reforms indicate a shift towards a more streamlined tax approach in India, aiming to enhance economic activity and consumer purchasing power. As industrialists and traders celebrate these changes, the focus now shifts to effective implementation and further improvements in the GST framework.