Sweeping changes in GST bring cheers to India Inc

Traders' body CAIT on Friday said the move to cut GST rates on over 200 items, saying the relief granted to businesses and consumers will be a game changer in simplifying the tax regime and encourage its wider adoption. In a statement, the Confederation of All India Traders (CAIT) said "in the wake of current situation where traders are a depressed lot, such relief were much awaited".

"It is estimated that by reducing tax and likely increase in composition limit, the government will suffer a loss of about 34,000 crore rupees. If traders are taken in confidence and various procedures are eased, the trading community

will ensure compensation of such losses by making all efforts to widen the tax net base," CAIT said. Industry body Assocham said the decision of the GST Council would lead to a pick-up in

consumer demand and significantly revive the business sentiment.

Assocham Secretary General D S Rawat said, "The increase in the composition scheme threshold would make life much easier for the small business entities". He added that the impact of these changes would be positively felt in the next few months. As many as 178 items of daily use were shifted from top tax bracket of 28 per cent to 18 per cent, while a uniform 5 per cent tax was prescribed for all restaurants, both air- conditioned and non-AC, Finance Minister Arun Jaitley said.

Move to push up sale of consumer products

GST Council's decision to reduce tax rates of 178 items to 18 per cent from 28 per cent will push up demand for consumer products, experts said. The Council Friday reduced the rates for products such as detergents, shaving and after-shave items, deodorants among others.