FICCI: GST 2.0 to Enhance Transparency, Fix Duty Imbalances, and Boost Growth

New Delhi — The Federation of Indian Chambers of Commerce & Industry (FICCI) on Thursday welcomed the GST 2.0 reforms, calling them a landmark step that will bring greater transparency and predictability to India’s tax regime while addressing long-standing inverted duty structures in several sectors.

Effective from September 22, 2025, the GST Council’s two-tier structure is expected to ease costs for households, strengthen labour-intensive industries, and stimulate consumption-led growth, FICCI said in a statement.

“GST 2.0 reforms are consumer-focused and growth-oriented. They will ensure stability, predictability, and transparency in India’s taxation system,” the release noted.

The correction of inverted duty structures in key sectors such as textiles, fertilisers, and renewable energy will reduce reliance on imports and enhance India’s global competitiveness.

According to FICCI President Harsha Vardhan Agarwal, the reforms will directly benefit MSMEs, households, and critical sectors including healthcare, agriculture, infrastructure, and automobiles. “While there may be revenue implications for the government, lower rates will fuel consumption demand and help contain inflation,” Agarwal said.

The tax cuts on essential goods and FMCG items such as soaps, shampoos, toothpaste, bicycles, kitchenware, and packaged food will ease household budgets. Reduced levies on agricultural inputs are expected to lower costs for farmers, boost rural incomes, and strengthen food security.

At the same time, lower GST on capital goods and industrial inputs will cut manufacturing costs, while tax relief for labour-intensive sectors such as textiles, handicrafts, footwear, leather, marble, granite, and toys will safeguard traditional livelihoods, support MSMEs, and generate new employment.

FICCI also highlighted that reduced GST on cement, renewable energy devices, and construction materials will accelerate housing and infrastructure development, complementing the government’s vision of “Housing for All.”

With inputs from IANS