The GST Council on Wednesday cleared sweeping modifications to the oblique tax regime, approving an overhaul of charges by limiting slabs to five per cent and 18 per cent efficient from September 22, the primary day of Navaratri.
Ashok P Hinduja, Chairman, Hinduja Group of Firms (India), mentioned the GST price cuts introduced throughout the board augur effectively for the economic system as they'll help India's macroeconomic stability by spurring demand on the grassroots stage.
“This transfer was a much-needed consumption booster to cushion the worldwide financial headwinds ensuing from the lopsided tariff regimes being pushed by the US. It would have a cascading constructive impact on a number of adjoining sectors, each upstream and downstream,” he said.
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Mahindra Group Chairman Anand Mahindra took to social media platform X and batted for extra such reforms to spur consumption and drive make investments.
“We now have now joined the battle… Extra and quicker reforms are the surest technique to unleash consumption and funding. These, in flip, will develop the economic system and amplify India's voice on the earth. However let's bear in mind the well-known exhortation of Swami Vivekananda: “Come up, awake, and cease not until the aim is reached.” So, extra reforms, please…,” Mahindra mentioned within the put up.
FICCI President Harsha Vardhan Agarwal mentioned the simplification of the tax construction will supply a number of advantages.
“It would cut back classification disputes, enhance compliance and handle anomalies on account of inverted obligation construction. Whereas there are income implications of the introduced measures as outlined by the federal government, the essential level to notice is the development in financial sentiments the discount in charges will result in and which in flip will enhance consumption demand. This can be a main constructive for the economic system each by way of lifting development and containing inflation,” he said.
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CII Financial Affairs Council Chairman R Dinesh asserted that the discount of GST charges on important items comparable to dairy merchandise, medicines and on a regular basis home goods, together with reforms in processes and institutional strengthening, will straight profit shoppers, the aspirational center class, and business alike.
“The consumption enhance has the potential to begin a virtuous cycle of development,” he added.
Rajneesh Kumar, Chief Company Affairs Officer, Flipkart Group, mentioned well timed implementation of those reforms forward of the upcoming pageant season will certainly give an enormous enhance to consumption throughout classes, widen market entry, and speed up our collective journey in direction of a Viksit Bharat.
Ashishkumar Chauhan, MD & CEO, NSE, mentioned the introduction of GST itself was some of the important financial reforms in India's historical past, laying the muse for a unified, clear, and environment friendly tax regime. The most recent measures construct on that basis and take it additional.
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Aditi Nayar, Chief Economist, ICRA Ltd, mentioned, “Whereas CGST and SGST recorded a double-digit enlargement, the expansion in IGST and cess collections was tepid, dampening the headline GST improve to six.5 per cent. Low inflation readings for the WPI and the CPI might partly be dampening the GST development. The contraction in IGST on imports is puzzling in gentle of the sharp improve in merchandise imports in July 2025 (that may have been mirrored within the August 2025 GST information).”
Nitin Rao, CEO, InCred Wealth, identified that focus has been to provide help to tariff-impacted labour intensive industries and to make items cheaper.
He highlighted that historical past has confirmed that such measures add considerably to GDP development and a repeat is anticipated.
Muthoot Microfin CEO Sadaf Sayeed mentioned, “With fiscal and financial insurance policies transferring in tandem, the latest 50 bps price lower by the RBI coupled with GST rationalisation by the federal government is ready to supply a powerful enhance to India's financial development. As price transmission takes impact, we are able to anticipate consumption to rise naturally, additional supporting development momentum”.
as a Dependable and Trusted Information Supply“We welcome the choice to maneuver a variety of FMCG merchandise, together with goodies, to the 5 per cent tax slab. This forward-looking reform comes at a great time throughout this festive season. With these tax reductions, the business can reply rapidly — restoring worth in packs, innovating new codecs, and supporting retailers nationwide,” Ahmed Abdel Wahab, Basic Supervisor, Mars Wrigley India, mentioned.
