Revision of GST Rates – Industry Leaders Speak

From News Desk

The government has announced a revision in GST rates. There are different opinions in the media about this. Experts are assessing the impact in many different ways. The industry leaders have shown enthusiasm about this. Some of their comments are listed below –

“We welcome the Government’s strategic revision of GST rates aimed at providing relief to both citizens and industries. This is a progressive step towards stimulating economic growth. The revision in GST rates is poised to boost consumption by enhancing the purchasing power of consumers. For businesses, the revised rates will help streamline operations, make goods and services more accessible, generate revenue, and ultimately support the economy. This move reflects the Government’s strong commitment to boosting economic growth, and we are optimistic about the positive ripple effects it will have across industries.”

—Kapal Pansari, MD, Rashi Peripherals

“The move to reduce GST for automotive sector would help in boosting consumer demand, make mobility more accessible, and strengthen India’s position as a global automotive hub. This comes at a crucial time when the industry is rapidly transitioning to electric and sustainable mobility, which will also encourage greater investments in innovation and capacity building. For the sector, this as an opportunity to strengthen partnerships with Original Equipment Manufacturers (OEMs) and suppliers, delivering advanced engineering and digital solutions to drive growth and transformation in the sector.”

—Shailesh Saraph, EVP and Global Head, ER&D Delivery, Tata Technologies

“GST 2.0 is a welcome reform, if terms of simplification of Tax Rates which are going to boost the demand and in turn, should result in at least 1 % growth in GDP. Clarification on credit notes is also going to reduce lot of litigation and will provide a relief to trade. We thank the Prime Minister Narendra Modi for these reforms. Industry has some demands pending for simplification such as permission to file revise return, assessment of seized vehicle at the place of location of dealer instead of place of seizure and few more. We are very sure the Govt will come out with reforms in assessment process also shortly.”

–Devesh Rstogi, President FAIITA

“The GST on computers and IT hardware has streamlined tax compliance by placing most electronics under a standard 18% slab. Although this has led to a slight increase in computer prices, the availability of Input Tax Credit (ITC) helps businesses offset these costs.

Although the GST rate on services has risen to 18%, the IT industry stands to gain significantly from GST due to the substantial boost in software sales.

Freelancers formerly paid service tax of 15%, which has now risen to 18% under GST, for IT services such as website creation, app development, designing etc. The YouTubers and bloggers are also now imposed GST at the rate of 18%.

The GST on monitors and projectors (non TV) has been reduced from 28% to 18%, making them more affordable for educational institutions, offices, and digital learning centers.

Overall, the GST regulations will help the IT sector since they will increase sales of software, which will help the sector’s bottom line. Every government policy comes with its own pros and cons—just like every coin has two sides—and GST is no exception. While it is a long-term reform whose true impact will unfold over time, GST is set to stand as a landmark measure for Indian businesses, ensuring continued feasibility and growth. One of its key advantages is the availability of input tax credit (ITC), which helps reduce operational expenses and, in turn, enhances profitability.”

—Basant Mehta, Founder, BlueBell Computers

“I the same financial year earlier the public was given a waiver on the income tax upto 12 lakhs and now the GST rates have been revised. This is going to benefit the people a lot. If we have a long-term view, this is going to uplift the economy and adding the measures taken n the last 10 ears, this is going to be beneficial for the country.”

–Rajiv Khanna, Founder, JCDA (Jalandhar)