FICCI Applauds GST Reforms as 'Diwali Gift' in PM Modi's Independence Day Speech

The Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed strong approval of Prime Minister Narendra Modi's address on the 79th Independence Day, lauding the emphasis on collaborative efforts to forge a self-reliant economic powerhouse. FICCI labeled the announced GST reforms as a 'Diwali gift,' anticipating these changes will alleviate tax burdens for both consumers and businesses, while simultaneously bolstering the Ease of Doing Business index.

FICCI President Harsha Vardhan Agarwal remarked, "The announcement of a comprehensive GST review after eight years is commendable. It aligns with the vision to reduce compliance burdens, eliminate unnecessary regulations, and establish a dedicated reform task force. This will undeniably strengthen India's status as a formidable global manufacturing hub." The industry aligns with the Prime Minister's vision of delivering world-class products at competitive prices, assuring its dedication to this goal.

On Independence Day, Prime Minister Modi reiterated the transformative impact of the Goods and Services Tax (GST) since its 2017 implementation. He emphasized the importance of forthcoming GST reforms, aimed at bringing relief to ordinary citizens, farmers, the middle class, and MSMEs. The Government's proposal outlines three key focuses: structural reforms, rate rationalization, and enhancing ease of living.

The Ministry of Finance announced that the Central Government has forwarded its GST reform proposals to the Group of Ministers (GoM) under the GST Council's purview for in-depth examination. Noteworthy reforms target rate rationalization to benefit diverse societal segments, including women, students, and farmers. Resolving classification disputes and correcting inverted duties will further stabilize rates, expand sectors, and stimulate economic activity.

The GST Council plans to discuss these proposals during its next session to expedite implementation, ensuring that the intended advantages materialize within the current fiscal year, according to a statement from the finance ministry.

(With inputs from agencies.)