Hyderabad: The Goods & Services Tax (GST) reforms, announced recently, not only address the core pain points of businesses and consumers alike but will also go a long way in simplifying the country’s complex indirect tax regime, Telangana Inc captains said.CII Telangana chairman RS Reddy and vice-chairman M Goutham Reddy termed the GST 2.0 framework as a landmark move that will benefit the micro, small and medium enterprises (MSME) sector as well as the food and agricultural sector.“The simplified compliance structure under GST 2.0 is a game-changer for MSMEs,” said RS Reddy, emphasising the role of AI-powered invoice matching and auto-populated returns in reducing manual errors and consultant dependency. Federation of Telangana Chambers of Commerce and Industry (FTCCI) president R Ravi Kumar also described the rationalisation of GST rates by merging 12% and 28% slabs into 5% and 18% categories as a “landmark step towards a simpler and more inclusive tax regime.“The FTCCI chief said these reforms are expected to bring significant cost relief to sectors such as construction and textiles, with the GST on cement reduced from 28% to 18% and man-made textiles now taxed at 5%. “These changes are anticipated to lower costs and boost competitiveness in these industries. Additionally, the agriculture and manufacturing sectors are set to benefit from reduced GST on critical inputs, potentially spurring growth and innovation,” Ravi Kumar said.FTCCI said while consumer-focused measures, including GST cuts on essentials and a complete exemption on health and life insurance, are expected to stimulate consumption, the exclusion of petroleum products from GST is a “stumbling block” for competitiveness. The 108-year-old apex trade and industry body urged the govt to establish a timeline for including petroleum products under GST and to consider offering optional higher GST rates with input tax credit for B2B transactions.The proactive reforms will create a digitally empowered, equitable and efficient tax system that will not only build trust between the state and citizens but will also strengthen India’s position as a resilient, investment-friendly economy as it marches towards its goal of emerging as a $5 trillion economy.
