GST reforms bring relief to industrialists, traders

Industrialists and traders in the region have welcomed the recent reforms in the Goods and Services Tax (GST) structure, describing these as beneficial for both business community and the common people.

Gulshan Dang, Haryana state president of the Rashtriya Jan Udyog Vyapar Sangathan, said the change had made many essential items more affordable. It would provide relief not only to traders and industrialists but also to the common man. Interestingly, he credited the continuous pressure from Opposition leaders, especially Rahul Gandhi, for prompting the changes.

“The original structure of GST with multiple tax slabs was unnecessarily complex and should never have been implemented in the first place. We have been raising our voices against the GST design and rate structure for the past eight years. It is unfortunate that it took so long, but we welcome the fact that our demands have finally been accepted,” Dang added.

He said the new reforms would see reduced GST rates on commonly used items such as soap, bicycles, televisions, and health and life insurance policies. He called this the biggest change in India’s tax system since GST was implemented, saying that simplified slabs would help with cost estimation and build investors’ confidence.

“Now that the GST slabs have been rationalised, the government must also resolve the recurring server downtime issues on the GST portal. Only then will the full benefits of GST reforms reach the people,” Dang concluded.

Narendra Chhikara, an industrialist and senior vice-president of the Bahadurgarh Footwear Park Association, has termed the recent GST reforms as a much-needed step to revive and boost the footwear industry across the country.

“We had been demanding a reduction in GST rates for the past three years. Finally, our efforts have paid off,” said Chhikara.

He recalled that in January 2022, the GST on footwear was increased from 5 per cent to 12 per cent, which had a negative impact on the sector. The higher tax burden not only affected manufacturers and retailers but also led to a rise in prices for consumers, resulting in a 25 per cent drop in sales.

Chhikara welcomed the decision to restore 5 per cent GST rate on footwear priced up to Rs 2,500, stating that it would significantly help in reviving demand in the market and supporting the industry’s growth trajectory.