PM Modi's GST Overhaul Garners Widespread Industry Support

Prime Minister Narendra Modi's announcement of sweeping GST reforms has received significant praise as well as support from the industry and the business community.

PM Modi while addressing the nation on Independence Day announced that the government will revisit the provisions of GST and reform the structure.

After the Prime Minister's speech, the government sources said that the Centre has  proposed to scrap the current slab of 12% and 28% of the GST rates and keep only 5% and 18% GST rates.

What Do Experts Say?

The Chairman of India Cellular & Electronics Association (ICEA) Pankaj Mohindroo said, "The Prime Minister's announcement was basically that it has been eight years since GST was introduced and we have experience, collections have improved, AI is being used to carry out data analysis... Since we transitioned from VAT to GST, the government was unsure how it would turn out and the collections that would be made, so the government decided to go with four tax slabs- 6%, 12%, 18%, and 28%. After eight years, the number of tax rates must be reduced and there are likely to be two tax rates now- a standard rate between 12-18%, a merit rate, and a demerit rate... There is a structural reform that is required, given our experience."

The CEO & Secretary General, Ranjeet Mehta, PHDCCI, said that the GST reforms by October are going to benefit the country in the coming years.

The decision to cut GST on daily-use items and simplify tax slabs will greatly benefit small traders, MSMEs, and the retail sector, while giving a big push to the economy ahead of the festive season, said BJP MP and Secretary General  of the Confederation of All India Traders (CAIT), Praveen Khandelwal, reacting to the announcement.

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