The Indian Chamber of Commerce and Industry, Coimbatore, has extended a warm welcome to the recent GST reforms announced during the 56th GST Council Meeting.
These pivotal changes aim to streamline the tax structure, foster economic growth, and enhance the overall business environment in the country.
The Chamber appreciated the efforts of the Prime Minister and the GST Council for driving these transformative changes.
The Indian Chamber also highlighted several key reforms introduced during the meeting:
Simplified GST Structure
The introduction of a two-tax slab system of 5% and 18%, effective from September 22, 2025, is expected to reduce complexity and promote ease of compliance across sectors.
Rate Reductions
Notable reductions in GST rates were announced, including:
- Paper and leather goods – aimed at boosting growth and consumption in these sectors.
- Agri-products – likely to enhance India’s standing as a global agri-export hub.
Textile Sector Rationalisation
A comprehensive rationalisation of GST in the textile sector is anticipated to strengthen the entire value chain, revive demand at the retail level, and enhance the export competitiveness of Indian textiles.
Impact of the Reforms
The Chamber noted that these reforms are poised to positively impact the Indian economy in several key areas:
- Promoting ease of doing business by simplifying the tax system and reducing compliance burdens.
- Encouraging growth and consumption through lower GST rates on essential and high-potential sectors.
- Enhancing export competitiveness by rationalising tax structures in export-oriented industries.
