The US-India Business Council (USIBC) has stated that the simplification of tax slabs is a significant step in creating a more straightforward, open, and effective tax system.
In order to build on these changes, promote increased bilateral trade and investment, and help create a more sustainable and equitable economic future, USIBC said in a statement that it looks forward to extending its collaboration with the Indian government and its stakeholders.
According to the Council’s statement shared on the social media platform X, “such forward-looking reforms not only improve the business climate in India but also send a strong signal to global investors about the country’s commitment to fostering growth and ease of doing business.”
It expressed gratitude to the Finance Ministry, the GST Council, and Prime Minister Narendra Modi for the most recent tax reforms.
“We applaud the government’s initiatives to increase consumption and make doing business in India easier. The Council added that lowering the GST on goods from a variety of industries, including as food, healthcare, life-saving medications, renewable energy equipment, and electronics, will boost India’s growth story while also improving consumer access and affordability and helping companies.
Beginning on September 22, a dual-slab structure will be adopted as a result of the GST rationalization. Along with a 40% slab for luxury and sin items (mainly intoxicants), the current 4-tier structure is replaced by the 5% and 18% GST slabs.
Due to the lower GST rates, India Inc.’s revenue is expected to increase by 6-7 percent for the current fiscal year. According to a Crisil Intelligence Report, consumption, which makes up 15% of business revenue, will benefit from the cuts.
The paper notes that the timing of the reduction is particularly appropriate, occurring during a period of ongoing global uncertainty and coinciding with India’s festival and wedding season, when consumption usually peaks annually.
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