Landmark GST Reforms Announced: A Boost for Growth and Reduced Tax Burden

In a move that has drawn widespread applause from industry leaders, the GST Council has announced significant reforms following its meeting on Wednesday. The overhauls are expected to energize economic growth, beckon investments, and ease the living standards of citizens across the spectrum. Describing the changes as a landmark step forward, Ashishkumar Chauhan, MD and CEO of the National Stock Exchange (NSE), stated that these measures would propel the growth rate further.

Chauhan highlighted how these reforms are structured to lessen tax burdens on both citizens and businesses, thus driving profitability and productivity. The alterations are anticipated to boost investments pivotal to India's economic expansion. Moreover, the NSE chief pointed out that these reforms enhance tax compliance by simplifying structures and promoting comprehensive participation in the formal economy, asserting that the capital markets are prepared to support India's next developmental phase.

Echoing this sentiment, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, called the rationalization of GST slabs a positive move. According to Shah, these measures will lower inflation, elevate growth, enhance consumer sentiment, and streamline business operations without derailing fiscal consolidation paths. He also noted that the adjustments would help mitigate the adverse effects of US tariffs. This notion was supported by Aditi Nayar, Chief Economist at ICRA Ltd., who emphasized the financial implications and pointed out that any foregone revenue would need to be balanced through alternate streams or spending adjustments.

(With inputs from agencies.)