Major Relief To People By Leaving More Money In Their Hands: Industry Chambers Hail GST Reforms

(MENAFN- IANS) New Delhi, Sep 4 (IANS) The country's leading industry chambers on Thursday welcomed the GST Council's decision to reduce tax slabs from four to two, saying the move will bring major relief to the common citizens by leaving more money in their hands.

The council, at its 56th meeting, abolished the 12 per cent and 28 per cent slabs and decided to stick with the 5 per cent and 18 per cent slabs.

Hemant Jain, President of the PHD Chamber of Commerce and Industry (PHDCCI), told IANS,“With this GST reform, the government has given a timely gift to the common man by increasing his spending power during the festive season.”

Jain highlighted that the reforms would significantly benefit the health sector, as GST on personal health and life insurance premiums has been reduced to zero. He said the measure would directly help households.

Commenting on the broader economy, he added,“GST reforms are crucial for realising Prime Minister Narendra Modi's vision of a self-reliant India. After the impact of U.S. tariffs, several sectors were facing challenges, as America is one of India's key trading partners. These reforms will strengthen India's growth story."

He also noted that while the government has made many essential items cheaper, luxury items - which are not part of everyday needs - have been made costlier to strike a balance.

Manish Singhal, Secretary General of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), echoed this sentiment.

“This is a highly relieving decision for the common man. Lower prices will encourage higher consumption, which in turn will increase production in industry. Greater production will attract more investment and boost the logistics and supply chain sectors. For instance, GST cuts on trucks and tractors will have a far-reaching impact,” Singhal said.

On insurance, Singhal pointed out that policies had become prohibitively expensive for ordinary citizens.

“The removal of GST will make insurance more affordable and encourage more people to get coverage. As the customer base expands, insurers will find it difficult to keep premiums high. This reform will help families strengthen their financial security. It is indeed a commendable step by the government,” he added.

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