Following the announcement of the revamped tax structure by the GST Council during its 56th meeting on 4th September 2025, the Southern India Engineering Manufacturers’ Association (SIEMA) welcomed the rationalisation of GST rates.
SIEMA President Mithun Ramdas stated that the introduction of single-window clearance for new applications would significantly enhance ease of doing business. He also noted that the reduction in GST on electrical and electronic appliances is a timely and much-needed move.
The reduction of GST on automobiles to 18% and 40% is expected to boost the manufacturing of auto components in Coimbatore. Additionally, foundries and job work companies stand to benefit from the anticipated increase in demand.
However, he expressed disappointment that the long-expected reduction of GST on agricultural pumps to 5% was not announced. SIEMA has urged the GST Council, through the Union Finance Minister, to reconsider the GST rate on water pumps in future deliberations.
