GST 2.0 Reforms: A New Dawn for Pune's Merchants

As the GST 2.0 reforms come into effect, merchants and businessmen in Pune express optimism for a revenue surge, potentially doubling their earnings. The Poona Merchant Chamber's Chairman, Rai Kumar Nahar, stated that the reduction from four to two tax slabs minimizes errors and simplifies compliance, likely leading to increased revenue.

Navin Goyal, VP of the Pune Dry Fruit Association and a director at The Poona Merchant Chamber, hailed the reforms as a 'great gift' for both merchants and consumers. He emphasized that the simplified tax structure will ease tax payments and consumer purchases, creating substantial benefits for both parties.

Prashant Girbane, Director General of the MCCIA, noted the reform's timeliness and potential to boost consumption. With a streamlined two-rate system primarily set at 5% and 18%, and a 40% rate reserved for luxury goods, the new structure should stimulate economic activity and support growth across various sectors.

Approved at the recent GST Council meeting, the reforms take effect on September 22, replacing the four-rate system with a simpler two-slab regime. Expected to ease compliance and lower consumer costs, the new framework aims to bolster manufacturing and support diverse industries. It promises to enhance the MSME sector and drive inclusive growth.

The positive impact is already visible in the FMCG and dairy sectors, where brands like Amul and Mother Dairy have announced price reductions. Products such as milk, butter, and frozen foods now fall under the 5% slab, indicating tangible benefits from the GST changes.

(With inputs from agencies.)