New Delhi, Sep 25 Confederation of Indian Industry's (CII) Western Region President Rishi Kumar Bagla on Thursday said the recent Goods and Services Tax (GST) reforms have simplified tax filing for industries and will enhance ease of doing business in the country.
Speaking to IANS at a CII event in the national capital, Bagla said the government has undertaken two major changes under the new framework.
"First, the tax slabs have been reduced to two, making goods significantly cheaper and more affordable for consumers. Second, in GST 2.0, the government has further simplified the indirect tax system. This has simplified tax filing and will promote ease of doing business," he said.
The reforms, which came into effect on September 22, cut taxes on nearly 370 products, including daily essentials and life-saving medicines.
The number of tax slabs has been reduced from four — 5 per cent, 12 per cent, 18 per cent, and 28 per cent, to two — 5 per cent and 18 per cent. Several items that earlier attracted GST between 5 and 18 per cent have now been moved to the zero-tax category.
Highlighting the broader economic outlook, Bagla noted that India’s economy is on a rapid growth trajectory, with the government stepping up investments in infrastructure such as highways, airports, and rural connectivity.
"This will generate employment and financial resources, which will further drive consumption," he added.
On the issue of US tariffs, Bagla said discussions are still underway between India and the US. "It would be premature to comment on this at this time,” he remarked. While tariffs may have some short-term implications, he stressed that strong private demand will cushion the economy in the long run.
Earlier, the CII praised Prime Minister Narendra Modi's clarion call to increase domestic manufacturing and demand for Indian-made goods, which gave the Swadeshi campaign new impetus thanks to the GST 2.0 tax cut.
The CII, in a statement, said that the Prime Minister's speech represents a turning point in India's development trajectory and that the GST 2.0 reforms' reduction of taxes on necessities and everyday items is expected to increase household disposable incomes and boost domestic demand.
According to the statement, these reforms will greatly increase domestic manufacturing and the demand for goods made in India, providing the Swadeshi movement with new impetus.
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