New Delhi: The Ministry of Food Processing Industries (MoFPI), in collaboration with the Confederation of Indian Industry (CII), convened a high-level CEO interaction in New Delhi to discuss the implications of the recently announced Next-Generation GST Reforms and GST Benefits.
The session, chaired by Chirag Paswan, Minister of Food Processing Industries, highlighted industry’s collective commitment to ensuring that GST Benefits are passed on to consumers and extended across the food processing value chain.
Industry Commits to Passing on GST Benefits
CEOs and senior leaders from major companies including Amul, Britannia, Coca-Cola, Dabur, DS Group, ITC, PepsiCo, Rasna, Mars, Orkla Foods, Mondelez, Bisleri, Cremica Foods, Mrs. Bector, Srinivasa Farms, and Hyfun Foods pledged to transfer the advantages of GST rate rationalisation to consumers. They also vowed to educate smaller enterprises about GST Benefits, enhance farmers’ value realization, and support the goals of import substitution and Make in India.
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Business leaders noted that lower tax rates would not only reduce consumer prices but also stimulate demand, strengthening growth across the food processing sector.
Next-Generation GST Reforms and Their Benefits
The roundtable discussions centered on the newly announced GST structure, which rationalizes tax slabs into a simplified system of 5% and 18%. Designed to reduce compliance complexity, correct inverted duty structures, and enhance ease of doing business, the reforms are expected to bring substantial GST Benefits to the sector. Staples, dairy, bakery, and packaged food products now fall under the 5% or nil tax bracket, boosting affordability for consumers while improving liquidity and competitiveness for enterprises in both domestic and global markets.
Chirag Paswan reaffirmed the government’s commitment to fostering an enabling environment for investment and innovation. He urged industry leaders to ensure that GST Benefits reach every stakeholder—from farmers and MSMEs to end consumers.
Quoting the Prime Minister’s vision of “Reform, Perform, and Transform,” he emphasised that the GST reforms have streamlined the tax system, corrected anomalies, and unlocked fresh growth opportunities for the food processing sector. Paswan also stressed the importance of trust and intent in implementing the reforms, calling upon industry to pass on benefits, enhance product quality, formalise the unorganised sector, and ensure income security for farmers.
MoFPI Secretary A P Das Joshi underscored the role of industry feedback in the successful rollout of the reforms. He called for accurate dissemination of information nationwide and encouraged businesses to focus on innovation, value addition, and technology adoption to maximize GST Benefits.
Also Read: GST 2.0 Hailed by Industry Leaders as Game-Changer for Insurance, Jobs, and E-Commerce
Rakesh Jain, CEO of Reliance General Insurance, called it a landmark step. “The GST Council’s decision to exempt health insurance premiums while allowing insurers to utilise input tax credits is a landmark step that combines consumer benefit with industry growth. This reform will make health protection more affordable for millions of families, senior citizens, and small businesses who often find premiums to be a stretch. By lowering the cost of entry, it encourages more individuals to seek coverage earlier, thereby strengthening the risk pool and improving the long-term resilience of the insurance sector.”
Royal Enfield has also announced that the brand will pass the full GST benefits to its customers across its motorcycle business, service, apparel and accessories range. With this move, Royal Enfield’s iconic 350cc range, will become more accessible for motorcycling enthusiasts across the country. For more than 350cc range, the prices will change as per the new GST rates. The motorcycles with new pricing will be available to customers starting September 22, 2025.
B Govindarajan, Managing Director – Eicher Motors Ltd., and Chief Executive Officer – Royal Enfield said: “The Government of India’s latest GST reform will not only make motorcycles under 350cc more accessible but will also excite the first-time buyers. Royal Enfield is delighted to announce that we are passing the full GST benefits of the price revision directly to our consumers, opening the world of Royal Enfield to an even larger community of riders. The 350cc segment, powered by our advanced platform, continues to deliver the perfect balance of heritage, performance and reliability and with the reduced prices, is now even more appealing for riding enthusiasts.”
Škoda Auto India also announced that it will pass on the full GST benefits to customers across its entire product portfolio, effective 22nd September 2025. In addition, the company is currently extending limited-period offer prices on the Kushaq, Slavia, and the Kodiaq, valid till 21st September, enabling customers to benefit from the upcoming price reductions immediately.
Ashish Gupta, Brand Director, Škoda Auto India, said, “The revised and simplified GST structure is a welcome step by the government of India, that works in favour of both the industry and our customers. By improving accessibility in the volume segment and bringing clarity to the premium space, it gives buyers greater value in their purchase decisions. For us, this means our products are now available at even more attractive prices, allowing the brand to reach a wider audience, while continuing to deliver European design, safety, and technology that define Škoda Auto India.”
