Industry bodies have welcomed the next generation GST reforms, saying that the simplification of the tax set-up will help in ease of doing business. The Confederation of Indian Industry – CII said that the two rates of 5 per cent and 18 per cent will simplify refunds and MSME procedures. It also hailed the exemption of individual life and health insurance from GST as pathbreaking. It further added that this clarity will ease compliance, reduce litigation, and give businesses and consumers the predictability they need. CII noted that by lowering rates on everyday items and critical inputs, the reforms provide immediate relief to families and strengthen the foundation for growth.

It expressed optimism that the Industry would swiftly move to pass benefits to the consumers and partner with the Government to ensure a smooth, timely rollout that lifts demand and supports jobs. Meanwhile, the Federation of Indian Chambers of Commerce and Industry – FICCI said the reforms reflect the maturation of the indirect tax regime, which has seen a steady rise in collections. FICCI President Subhrakant Panda called it a big bang move and a bold step, which will spur demand besides simplifying many of the related processes. Mr Panda added that this strengthens the foundation for a self-reliant India.