GST Reforms Signal India’s Commitment to Growth, Ease of Business: USIBC

New Delhi- The rationalisation of GST slabs represents a major step toward creating a simpler, more transparent, and efficient tax system, the US-India Business Council (USIBC) has said.

In a statement, the Council noted that it looks forward to working with the Government of India and its stakeholders to build on these reforms, deepen bilateral trade and investment, and support a more inclusive and sustainable economic future.

“Such forward-looking reforms not only enhance India’s business environment but also send a strong signal to global investors about the country’s commitment to growth and ease of doing business,” the USIBC said in a post on X.

The Council also commended Prime Minister Narendra Modi, the GST Council, and the Finance Ministry for their role in driving the reforms.

“We welcome the government’s efforts to boost consumption and improve the ease of doing business in India. The reduction of GST rates on food, healthcare, life-saving medicines, renewable energy devices, and electronics will improve access and affordability for consumers, benefit businesses, and further strengthen India’s growth story,” the statement added.

From September 22, the GST structure will move toward a dual-slab system of 5 per cent and 18 per cent, replacing the existing four-tier model, alongside a 40 per cent slab for luxury and sin goods.

According to a Crisil Intelligence Report, the tax cuts are expected to lift India Inc.’s revenues by 6-7 per cent this financial year, with consumption — which makes up 15 per cent of corporate revenues — set to benefit significantly.

The report also noted that the timing of the reforms is crucial, coinciding with global economic uncertainties and aligning with India’s festive and wedding season, when household spending typically peaks.

With inputs from IANS