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Key Points

The NSE Managing Director Ashishkumar Chauhan has praised the government's landmark GST reform, which reduces tax slabs and simplifies the taxation system. By cutting GST rates, the government aims to put more money in citizens' hands and stimulate economic growth. Chauhan believes this move will encourage better tax compliance and reduce evasion. The new GST structure, effective from September 22, is expected to help India achieve over 8% GDP growth in the coming years.

Key Points: NSE CEO Chauhan Praises Modi's GST Reform for Economic Growth

  • NSE chief welcomes reduction of GST slabs from four to two
  • Expects GDP growth to exceed 8% in coming years
  • Tax changes will increase consumer spending power
  • Simplified tax structure to improve overall economic activity
2 min read

GST cuts will put more money in common citizens' hands, boost economy: NSE CEO

NSE MD Ashishkumar Chauhan highlights how simplified GST structure will boost consumer spending and drive India's economic progress

"Reasonable taxes will ensure better compliance and reduce tax evasion - Ashishkumar Chauhan, NSE CEO"

New Delhi, Sep 4

NSE Managing Director and CEO Ashishkumar Chauhan on Thursday welcomed the government's decision to simplify the Goods and Services Tax (GST) structure, saying that lower tax rates will leave more money in the hands of people, who will spend more, thereby creating a virtuous cycle for the economy.

Chauhan congratulated Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the "historic" decision to reduce GST slabs from four to just two.

"Reasonable taxes will ensure better compliance and reduce tax evasion. This reform will boost overall economic activity in the country," he said.

The NSE chief added that the decision would not only simplify the system but also pave the way for India to grow at over 8 per cent GDP in the coming years.

"I have always believed that reasonable taxes would ensure that tax compliance increases and the tax avoidance or tax evasion reduces drastically. So, overall reduction of rates reducing the complexity which has been now decided," Chauhan stated.

He recalled that the introduction of GST in 2017 was itself a landmark move, and the latest rationalisation would further strengthen India's economic growth story.

"In fact, the GST introduction in 2017 itself was a historic move and this particular decision now is going to go a long way in ensuring that India is able to now go about 8 per cent plus GDP growth rate going forward," he added.

Meanwhile, on Wednesday, the GST Council, chaired by Finance Minister Nirmala Sitharaman, scrapped the 12 per cent and 28 per cent rates, retaining only the 5 per cent and 18 per cent slabs.

The new structure will come into effect from September 22.

As part of the changes, the tax rate on personal care items such as hair oil, shampoo, toothpaste, and dental floss has been reduced from 18 per cent to 5 per cent.

Packaged snacks like namkeens, bhujia, mixtures, and chabena have also been moved to the 5 per cent slab from the earlier 12 per cent.

- IANS

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Reader Comments

P
Priya S
As a small business owner, I welcome this move. The simplified tax structure will make compliance much easier. No more confusion about which slab applies to which product. Hope this actually translates to price reduction for consumers.
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Michael C
While the intention is good, I hope the government ensures that businesses actually pass on the benefit to consumers. Often we see companies maintaining prices despite tax cuts. Proper monitoring is essential.
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Ananya R
Great move! Lower taxes on namkeens and snacks will make our chai-time more affordable 😊. Hope this economic boost creates more jobs and opportunities for youth. Jai Hind!
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Vikram M
The simplification from 4 slabs to 2 is a much-needed reform. GST was becoming too complicated with multiple rates. This should reduce litigation and make doing business easier. Hope states cooperate fully in implementation.
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Sarah B
As someone who recently started working in India, I appreciate the government's efforts to streamline taxes. Simpler tax systems attract foreign investment and make the economy more competitive globally.

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