Will the New GST Reform Simplify Business and Stimulate Consumption?
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Synopsis
In a recent statement, ITC's Chairman Sanjiv Puri hailed the forthcoming GST reform as a game-changing move for businesses. With an emphasis on simplification and enhanced consumption, this initiative promises to reshape the economic landscape. Join us as we explore the potential impacts on employment and innovation within Indian enterprises.
Key Takeaways
- Simplification of business processes
- Increased consumption and job opportunities
- Support for small enterprises
- Focus on innovation and sustainability
- Positive impact on government finances
Kolkata, Sep 19 (NationPress) ITC Limited Chairman and Managing Director Sanjiv Puri expressed his support for the newly introduced Goods and Services Tax (GST) reform on Friday, deeming it a significant advancement that will streamline business operations and enhance consumption.
In an interview with IANS during the 124th Annual General Meeting of the Merchants’ Chamber of Commerce and Industry (MCCI), Puri stated, “The revised GST is an excellent initiative. It will simplify the overall business framework, improve the ease of doing business, and provide advantages to smaller enterprises as well.”
“With reduced rates, we expect an increase in consumption, which will subsequently generate more job opportunities,” he remarked.
The meeting saw participation from Bengal Chief Minister’s Principal Chief Advisor Dr. Amit Mitra, alongside other notable figures.
At the MCCI gathering, Puri also emphasized the necessity for Indian businesses to reinvent their operational models, placing a stronger emphasis on innovation, sustainability, and resilience.
“Businesses must recognize their societal responsibilities. We require business strategies that prioritize both people and the planet,” he asserted, stressing the importance of trends like digitization, circularity, and supply chain resilience.
The recent GST reforms, effective from September 22, aim to reduce rates on a variety of goods and simplify the overall tax framework.
A report by Crisil suggests that these reforms are not expected to exert considerable pressure on government finances.
While the government anticipates a short-term revenue decline of approximately Rs 48,000 crore annually, analysts believe that the overall impact will be manageable, considering last year’s total GST collections reached Rs 10.6 lakh crore.
Experts are optimistic that the combination of lower rates and consistent demand growth for services, along with newly included items under GST, will help sustain revenue balance.
Simultaneously, reduced tax rates on essential consumption goods are projected to enhance purchasing power, delivering a wider boost to the economy.
Point of View
It is clear that the recent GST reforms mark a significant shift in India's economic policy. The intention to simplify tax structures and boost consumption is a strategic move that aligns with national growth objectives. However, the real impact will depend on implementation and response from various sectors.
NationPress
20/09/2025
Frequently Asked Questions
What is the main benefit of the new GST reform?
The new GST reform aims to simplify business processes and enhance consumption, benefiting small enterprises and contributing to job creation.
When will the new GST reforms take effect?
The latest GST reforms are set to come into effect on September 22.
How will the new GST reform impact the economy?
The reform is expected to increase purchasing power through lower tax rates, thereby providing a broader economic boost.
