GST 2.0 Hailed by Industry Leaders as Game-Changer for Insurance, Jobs, and E-Commerce

GST 2.0

GST 2.0 has drawn strong praise from industry leaders across insurance, real estate, banking, staffing, and e-commerce, with experts calling it a transformative reform that balances consumer benefits with business growth.

GST 2.0 to Boost Health Insurance Affordability

Rakesh Jain, CEO of Reliance General Insurance, welcomed the GST Council’s decision to exempt health insurance premiums while allowing insurers to utilise input tax credits. He said this move will make healthcare protection more affordable for families, senior citizens, and small businesses. By lowering entry costs, more individuals will seek early coverage, strengthening the insurance pool and sector resilience.

Also Read: GST on Fisheries Sector Reduced to 5%: Major Boost for Fish Farmers and Seafood Exports

Supporting the view, Parag M Munot, MD of Kalpataru Ltd., termed it a landmark reform that improves affordability and embeds insurance deeper into financial planning, benefitting both households and businesses.

Naveen Chandra Jha, MD & CEO of SBI General Insurance, highlighted that the reduction in taxation on the healthcare sector marks a transformative step towards inclusivity. He noted that GST 2.0 will remove barriers to healthcare affordability and help accelerate the vision of “Insurance for All by 2047,” with expanded focus on rural and semi-urban markets.

Also Read: GST Reforms 2025: Industry Leaders Hail Rate Rationalisation and Simplification

GST 2.0 Simplification to Drive Growth Across Sectors

C S Setty, Chairman of IBA & SBI, emphasized that India’s shift to a simplified two-tier GST structure of 5% and 18% represents a landmark in indirect tax reforms. He explained that lower rates on household goods will provide relief to consumers, expand disposable incomes, and strengthen insurance penetration. Businesses will also benefit from reduced compliance costs, leading to higher competitiveness and stronger economic activity.

GST 2.0 to Boost Employment and Workforce Growth

Sunil Chemmankotil, Country Manager of Adecco India, described GST 2.0 as a catalyst for job creation and workforce formalisation. With consumption-led growth, staffing and gig workforce demand is set to rise, especially during the festive season. He noted that the reform will encourage businesses to adopt sustainable workforce strategies and build future-ready employment ecosystems.

Also Read: Affordable Housing to Gain as GST Reforms in Real Estate Lower Construction Costs

GST 2.0 to Strengthen E-Commerce Expansion

Kapil Makhija, MD & CEO of Unicommerce, highlighted that the simplification of tax structures under GST 2.0 will positively impact the e-commerce sector. Lower rates on essentials and consumer durables will improve affordability and drive digital commerce adoption. Additionally, reduced compliance complexity will support sellers, boost e-commerce exports, and enhance global competitiveness.

Amit Jain, CEO & Country Manager India, MD Renewables & Batteries India & South-East Asia said, “The GST Council’s decision to reduce the GST rate on renewable energy equipment to 5% marks a significant step forward in India’s clean energy journey. As a global energy utility committed to accelerating the energy transition, ENGIE India welcomes this policy shift.

With 2.3 GW of renewable capacity and ambitious plans to scale further, ENGIE remains deeply committed to supporting India’s target of 500 GW of renewables and achieving a carbon-neutral future. This progressive move will not only encourage renewable energy players in India by strengthening liquidity across the renewable value chain but also fast-track the execution of green projects. This decision will also potentially help in attracting greater investments in clean technologies and bolster India’s competitiveness in renewable energy and reinforce the country’s leadership in the global energy transition.”

Author

  • Salil Urunkar

    Salil Urunkar is a senior journalist and the editorial mind behind Sahyadri Startups. With years of experience covering Pune’s entrepreneurial rise, he’s passionate about telling the real stories of founders, disruptors, and game-changers.

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