Is the New GST Rate Structure a Bold Step for Small Scale Industries?
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Synopsis
Laghu Udyog Bharati (LUB) has lauded the newly proposed GST 2.0 reforms as a transformative move for India's economy. With a simplified tax structure aiming to boost small industries, these reforms are expected to pave the way for a self-reliant Viksit Bharat.
Key Takeaways
- New GST rates: 5% and 18% effective September 22.
- Visionary leadership praised for reforms.
- Focus on Micro and Small Enterprises (MSEs).
- Commitment to consumer welfare and economic growth.
- Expected reduction in compliance burdens.
New Delhi, Sep 4 (NationPress) Laghu Udyog Bharati (LUB), an organization that advocates for small scale industries, praised the newly introduced GST rate framework as a vital component for nation-building and a courageous move towards establishing a self-sufficient Viksit Bharat.
The group’s president, Ghan Shyam Ojha, remarked: “The revised tax brackets of 5 percent and 18 percent, set to take effect from September 22, signify a transformative change in India's indirect tax landscape.”
“Laghu Udyog Bharati (LUB) enthusiastically endorses the momentous GST 2.0 reforms unveiled by Prime Minister Narendra Modi during his speech at the Red Fort on August 15, which was subsequently approved by the GST Council for a streamlined two-tier GST framework on Wednesday,” he stated.
In a statement from LUB’s regional office in Nagpur, Ojha expressed, “We applaud the visionary leadership of PM Modi and the prudent direction of Finance Minister Nirmala Sitharaman in implementing this long-awaited reform.”
“We view these reforms as a foundational element in nation-building and a bold initiative towards fostering a dynamic, self-sufficient Viksit Bharat,” he added.
He emphasized that the decision to rationalize tax rates, while ensuring the Ministry of Finance absorbs any immediate revenue loss, illustrates a robust commitment to economic development, consumer welfare, and national interest.
“This reform is genuinely groundbreaking. It transcends simple rate adjustments and indicates a significant leap towards enhancing the ease of doing business, especially for Micro and Small Enterprises (MSEs). Reduced working capital needs, more affordable raw materials, and broader market access will immensely benefit small industries,” said Ojha.
In a joint statement with Ojha, LUB’s All India General Secretary Om Prakash Gupta remarked: “We especially appreciate the emphasis on easier registration, quicker refund processing, and diminished compliance burdens, which will collectively strengthen India's industrial framework and cultivate a more favorable atmosphere for entrepreneurship and innovation.”
“Laghu Udyog Bharati commits its full support to the government in ensuring the effective and timely execution of this reform. Our member units are determined to pass on the advantages of this rationalization to end consumers, thereby aligning with the Prime Minister's vision of ‘Atmanirbhar Bharat’ and the ‘Make in India Movement’,” he stated.
Gupta noted: “These GST 2.0 reforms will not just benefit industries but also guarantee that the end consumers experience the positive effects through reduced prices and improved access to goods and services.”
We are convinced that this rate structure, coupled with the stability and clarity it provides, will considerably lower litigation, boost compliance, and encourage consumption, paving the way for robust, inclusive economic growth,” he said.
Point of View
I recognize the significance of the GST 2.0 reforms in propelling our nation towards economic self-reliance. These changes not only support small scale industries but also prioritize consumer welfare, aligning with the government's broader vision for a prosperous India.
NationPress
04/09/2025
Frequently Asked Questions
What are the key features of the new GST rate structure?
The new GST rate structure includes revised tax slabs of 5% and 18%, which are aimed at simplifying compliance and enhancing the ease of doing business, especially for small enterprises.
How will these reforms benefit small scale industries?
These reforms will lower working capital requirements, make raw materials more affordable, and broaden market access, significantly boosting the performance of small industries.
What is the expected impact on consumers?
Consumers can expect lower prices and improved access to goods and services as the benefits of the rationalized tax rates are passed down by industries.
How does the government plan to manage the short-term revenue loss?
The Ministry of Finance has committed to absorbing the short-term revenue loss to ensure that the reforms can be implemented effectively without immediate financial strain.
What is Laghu Udyog Bharati's stance on these reforms?
Laghu Udyog Bharati fully supports the reforms, emphasizing the importance of timely implementation to maximize benefits for their member units and consumers.
