Key Points

Dev Garg, Vice President, IREF, stated that the Goods and Services Tax (GST) has led to a surge in positive sentiment about the Indian economy. With massive cuts in GST rates for most consumer items, we expect a significant uptick in demand for premium varieties of rice.

"The GST bill has led to a surge of positive sentiment about the Indian economy, and with huge cuts in GST rates for most consumer items, we expect a huge uptick in demand for premium varieties of rice. In the upcoming season, basmati rice and other premium non-basmati rice varieties are expected to increase in demand, which is a plus for the farmers," Garg added.

He further added that the restructuring of indirect taxes will boost consumer demand, especially in modern retail and for high-value varieties.

Garg stated that the GST registration time limit for approval, which is now reduced to just three days, will cut down the delays, making it much easier for new businesses to start trading quickly.

"Second, a very important change: exporters will now receive 90% provisional GST refunds within one week. Earlier, refunds took almost 60 days, which blocked working capital and slowed down business. This fast-track refund system is a huge, welcome step that will boost liquidity, competitiveness, and confidence among exporters," he added.

"But the benefits don't stop there. The simplified GST reform as a whole is a game-changer. It lowers costs, reduces compliance, and allows traders and manufacturers to focus on growing their businesses. This is especially crucial for our MSMEs, the backbone of the economy, who will now face fewer tax slabs, less paperwork, and lower compliance burdens," he added.

The IREF stated in a release that the reform will strengthen our manufacturing and make exports more competitive, while ensuring greater affordability for ordinary families.

At the same time, lower tax rates and higher demand will stimulate consumption, and smoother rules will create a renewed cycle of growth that means more jobs, stronger industries, and sustainable development across the country, the IREF added.

"We are deeply grateful to Prime Minister Narendra Modi and the Government of India for this progressive reform. It reflects a strong commitment to ease of doing business, empowers entrepreneurs, strengthens industries, and builds confidence in the future of our economy," the release added.

The body stated that GST delivers relief for traders, strength for the industry, direct benefits for exporters, and confidence in India's growth story.

Under the revised tax slab, items on which GST has been reduced to zero from 5 per cent include ultra-high temperature milk, chena and paneer. All Indian breads will be available at a nil rate. So roti or paratha or whatever it is, they all come to nil.

The simplification is part of the "Next-Generation GST" reform initiative, designed to boost affordability, consumption, and economic efficiency.

- ANI