Nagpur: The Chamber of Associations of Maharashtra Industry & Trade (CAMIT) has welcomed the Government’s landmark decision to simplify India’s GST framework. Describing it as a “long-awaited reform,” Dr. Dipen Agrawal, President of CAMIT, said the shift to a two-slab GST system (5% and 18%), effective from September 22, 2025, will boost transparency, ease compliance, and encourage consumer-driven growth.
Key Benefits of the New GST Structure
- Relief for Households: Essential goods like milk, paneer, snacks, and life-saving medicines will now attract lower or zero GST, easing the financial burden on middle- and lower-income families.
- Boost to Construction & Consumer Goods: The cut in GST on appliances, small vehicles, and cement from 28% to 18% is expected to stimulate demand, lower construction costs, and reduce the overall cost of living.
- Healthcare Made Affordable: Tax exemptions on health and life insurance, along with reduced GST on medical products, will make healthcare more accessible.
Challenges Ahead
- Revenue Pressure: The reforms could lead to a revenue shortfall of ₹47,000–₹93,000 crore annually, raising concerns for state finances.
- High GST on Select Goods: Tobacco, pan masala, sugary drinks, and luxury products will attract 40% GST, which may affect demand despite public health goals.
- Need for Further Simplification: CAMIT believes the ultimate aim should be a single GST rate (12–13%) and inclusion of excluded sectors like petroleum and alcohol.
Compliance Reforms from April 2025
The government has also announced new compliance measures, including multi-factor authentication, stricter e-way bill rules, mandatory invoice serials, ISD registration, and tighter return filing timelines. These changes, CAMIT noted, will enhance digital accountability and system integrity.
CAMIT’s Final Stand
Dr. Agrawal highlighted that:
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- The reforms will provide relief for citizens and small businesses.
- Policymakers must ensure fiscal sustainability for both states and the centre.
- If implemented well, the GST overhaul can accelerate India’s economic growth.
