GST 2.0 Is Revolution, Not Just Reform: Hiranandani Group's Niranjan Hiranandani

(MENAFN- IANS) Mumbai, Sep 4 (IANS) The Hiranandani Group co-founder and Managing Director, Dr Niranjan Hiranandani, on Thursday hailed the latest overhaul of the Goods and Services Tax (GST) 2.0 as "revolutionary", calling it a "bold and transformative step" taken by the PM Narendra Modi government.

Speaking to IANS, Hiranandani said: "PM Modi had announced during his Independence Day speech that something revolutionary and exciting would come before Diwali. He has delivered. This isn't just a reform-it's a revolution.”

He praised the new GST 2.0 structure, highlighting the introduction of only two tax slabs and the implementation of a 'sin tax' of up to 40 per cent on items deemed harmful, such as tobacco and aerated drinks. Meanwhile, the GST on essential construction goods has been reduced to 18 per cent.

"People may say these are just modifications, but the reality is different. The challenge has always been balancing the need for government revenue-especially for infrastructure and technology-with the goal of encouraging growth. This new approach does both," Hiranandani told IANS.

He noted that the new tax structure brings direct relief to the masses.

“Items that were taxed at 12 per cent - like essential food products - have been brought down to 5 per cent. On the other hand, harmful products have rightly seen a tax increase.”

Hiranandani particularly appreciated the removal of GST on medicines.

“This is a much-needed move. Many people, especially from middle and lower-income groups, struggle with healthcare costs. Removing GST on medicines is a strong and compassionate step.”

He further praised the government for coming up with the idea of sin goods.

"Items that are harmful to people and not good for their health have been taxed at 40 per cent, which is good because the intention is that people should buy less of them," he added.

As the GST Council approved historical changes to India's indirect tax structure, several daily-use goods will become cheaper from September 22.

The new tax structure, adopted on Wednesday, has two major slabs now 5 per cent and 18 per cent, and a whopping 40 per cent for sin goods.

For the common man, this change means more money in hand, which the government hopes will be routed into the economy, giving it a significant boost.

From groceries and fertilisers to footwear, textiles, and even renewable energy, a broad basket of goods and services is set to become more affordable. Items previously taxed at 12 per cent and 28 per cent will now largely migrate to the other two slabs, making a wide range of products cheaper.

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