GST slabs cut from four to two; taxes on 370 items, including essentials and medicines, reduced or zeroed
New Delhi
Confederation of Indian Industry’s (CII) Western Region President Rishi Kumar Bagla said on Thursday that the recent Goods and Services Tax (GST) reforms will make tax filing simpler and boost ease of doing business across India. Speaking at a CII event, he highlighted two key changes introduced under the new GST framework.
“First, the tax slabs have been reduced to two, making goods cheaper and more affordable for consumers. Second, GST 2.0 has simplified the indirect tax system, easing compliance for industries,” Bagla explained.
The reforms, effective from September 22, reduced GST slabs from four—5, 12, 18, and 28 percent—to just two, 5 and 18 percent. Taxes on nearly 370 items, including daily essentials and life-saving medicines, were cut. Several goods that earlier attracted GST between 5 and 18 percent have now been moved to the zero-tax category, directly benefiting households.
Bagla stressed that these reforms will increase disposable incomes, spur consumption, and strengthen domestic demand. He added that India’s economy is already on a strong growth path, with government investments in infrastructure—highways, airports, and rural connectivity—further supporting job creation and financial resources.
On US tariff concerns, Bagla said talks are ongoing, and it is too early to comment. While tariffs may have short-term effects, he believes robust private demand will cushion the economy.
CII also praised Prime Minister Narendra Modi’s call for greater domestic manufacturing and demand for Indian-made products. The industry body said GST 2.0 provides fresh momentum to the Swadeshi movement, encouraging local manufacturing and reducing costs for essential goods.