Procedural and structural reforms take centre stage

THE GST reforms have shown the conviction of the government to deliver on its vision and promises.

- Bipin Sapra

The complete consensus and alignment of the Centre and state representatives showed a rare unanimity of purpose, a commitment to simplify GST, reduce prices and make Indian goods competitive globally.

These measures will boost consumption and spur demand, leading to economic growth and job creation.

At the heart of the reforms lies the decision to shift to a streamlined two-slab GST structure of 5% and 18%, a change that will be felt directly in the wallets of ordinary citizens.

Daily essentials such as soaps, toothpaste, paneer, and roti have become cheaper; another 33 life-saving medicines and health and life insurance premiums are now completely tax-free. Beauty and physical well-being services now attract just 5%, increasing the accessibility.

Industry and agriculture, too, will see significant benefits. Small cars, two-wheelers, buses, and auto parts are now taxed at 18%, instead of 28%, a move expected to spur affordability, demand, and job creation. Farmers, meanwhile, will enjoy reduced costs on tractors, harvesters, and bio inputs, while parallel support for textiles, fertilisers, and renewable energy strengthens both Make in India and the country's green growth ambitions.

But the significance of GST 2.0 also lies beyond rate cuts. It represents a decisive push towards procedural clarity and structural certainty, easing compliance and instilling confidence across the tax ecosystem.