GST Reforms 2025 have received strong endorsement from tax experts, corporate leaders, and industry bodies, who describe the measures as a landmark step in India’s journey toward a simpler and more inclusive tax regime.
The government’s move to rationalise tax rates, resolve classification disputes, and correct inverted duty structures is expected to stimulate demand, enhance compliance, and provide relief to households and businesses alike.
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GST Reforms 2025 Address Classification Disputes
According to Jignesh Ghelani, Partner, Dhruva Advisors, classification has been a major area of dispute under the GST framework. The reforms now bring auto parts uniformly under 18%, beverages under 40%, and exempt all Indian breads such as roti, khakhra, chapati, and pizza bread. Similar goods have also been streamlined under uniform rates, such as televisions and monitors at 18%, all batteries under heading 8507 at 18%, and ultra-high temperature milk exempted alongside other milk categories. Ghelani noted that while rationalisation is a welcome relief, businesses must update classification, remap stock keeping units, and review ERP systems to ensure compliance.
GST Reforms 2025 Seen as Transformative for India’s Growth
Dr Anish Shah, Group CEO & MD, Mahindra Group, called the reforms a defining moment, highlighting their impact on sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs. He said the two-rate structure strengthens India’s economic foundations and aligns with the vision of “Viksit Bharat @2047.”
Rajesh Jejurikar, ED & CEO – Auto and Farm Sector, M&M, emphasised that rationalisation will reduce costs for tractors, farm machinery, and SUVs, stimulating demand and supporting inclusive growth. He also welcomed the continuation of the 5% GST rate on EVs as a boost to clean mobility.
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Consumer and FMCG Sector Benefits from GST Reforms 2025
Aasif Malbari, CFO, Godrej Consumer Products Ltd, welcomed the lowering of taxes as a strong driver of volume growth and overall economic momentum, assuring that benefits will be passed on to consumers.
Sunil Agarwal, Co-founder and Chairman, Joy Personal Care (RSH Global), noted that reducing GST on daily essentials from 18% to 5% would directly ease household financial pressure and stimulate consumption, especially in rural India where FMCG growth has remained strong.
Corporate Leaders Applaud GST Reforms 2025
Ashok P Hinduja, Chairman, Hinduja Group of Companies (India), described the reforms as the most impactful step to support macroeconomic stability and demand growth. He praised the exemption of GST on life and health insurance as revolutionary for social security.
Ashishkumar Chauhan, MD & CEO, NSE, said the reforms reduce tax burdens, boost profitability and compliance, and ease living costs for citizens, particularly the poor and middle class.
GST Reforms 2025 Bring Cheer to the Automobile Sector
Shailesh Chandra, President, SIAM, welcomed the reduction of GST on vehicles to 18% and 40%, saying it would benefit first-time buyers and middle-income families while sustaining momentum in EV adoption. He added that resolving classification and inverted duty structures would streamline processes and support ease of doing business.
Industry Experts See GST Reforms 2025 as Festive Season Booster
Pratik Jain, Partner, Price Waterhouse & Co LLP, called the announcement the boldest rate cut since GST’s introduction, predicting a strong consumption boost ahead of the festive season.
Overall, GST Reforms 2025 are being hailed as a bold and forward-looking policy initiative, expected to stimulate consumption, support economic stability, and drive India’s growth trajectory towards long-term prosperity.
