New Delhi, Sep 5
Industry leaders welcomed the recently announced GST reforms, which reduce the number of tax slabs, stating that it will make tax compliance easier while also directly benefiting consumers through lower prices.
Jharkhand Chamber of Commerce Joint Secretary Navjot Alang Rubal said that the reduction of the number of slabs from four to two under the new GST structure is a highly positive step.
According to Rubal, this reform will greatly benefit the middle and lower-income groups as the tax reductions on essential items of daily use will bring a noticeable drop in prices.
He further added that the government has addressed the needs of all sections of society in this reform. In the agricultural sector, GST on tractor tyres has been reduced from 18 per cent to 5 per cent.
For the education sector, GST on pencils, erasers, books, and notebooks has been completely removed, making education more affordable for students.
Similarly, GST on many medical devices has been reduced, while medical insurance and essential medicines for diseases like cancer and diabetes are now exempt from tax.
Bhadagarh Chamber of Commerce and Industries President Subhash Jagga described this as a consumer-friendly move that will bring down prices.
He noted that the timing of its implementation during the Navratri festive season is especially encouraging, as it will boost market demand.
Ranchi pharmaceutical trader, Amit Kishore Agarwal, expressed his gratitude to the government, pointing out that GST on many life-saving medicines has been removed altogether.
Taxes on some medicines have been cut from 12 per cent to 5 per cent, while certain medical devices are now either tax-free or fall under the 5 per cent bracket, Agarwal added.
Sarla Anil Modi School of Economics' Assistant Professor, Dr Isha Khanna, also welcomed the reforms, calling them an important milestone.
She said that reducing the number of slabs from four to two will simplify compliance and lower the prices of essential goods, thereby strengthening urban demand.
She added that despite earlier policy measures such as low interest rates, credit growth has not reached expected levels and private investment remains subdued due to global uncertainties and supply chain disruptions.
In this context, the GST reforms will help unlock domestic demand, which is critical for sustained economic growth, Dr Khanna said.
— IANS
Reader Comments
As a mother of two school-going children, the removal of GST on notebooks and stationery is a welcome move. Education expenses have been rising steadily - every little bit helps! 📚✨
While the intent is good, I hope the government ensures that businesses actually pass on the benefits to consumers. Often we see companies maintaining old prices despite tax cuts. Proper monitoring is essential.
My father is diabetic and the medicine costs have been a constant worry. The tax exemption on essential medicines is such a relief for families like ours. Thank you for thinking about healthcare! 💊
Simplifying from 4 to 2 tax slabs is a game-changer for small businesses like mine. The compliance burden was overwhelming. This should encourage more entrepreneurs to come into the formal economy 🎯
Perfect timing before Navratri and Diwali! Lower prices + festive season = happy shopping for everyone ðŸ›ï¸ Hope this boosts the economy as the experts are predicting
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