Industrialist Anand Mahindra has welcomed the sweeping Goods and Services Tax (GST) rate cuts announced on Wednesday, urging policymakers to accelerate further reforms to strengthen India’s economy.Mahindra framed the GST cuts as a step in the right direction but stressed that this should mark the beginning of a larger reform wave. In a post on X, the Mahindra Group chairman wrote, “We have now joined the battle… More and faster reforms are the surest way to unleash consumption and investment. Those, in turn, will expand the economy and amplify India’s voice in the world.”He invoked Swami Vivekananda’s call and urged further reforms. He wrote, “But let’s remember the famous exhortation of Swami Vivekananda: ‘Arise, awake, and stop not till the goal is reached.’ So, more reforms, please…”.His remarks came after finance minister Nirmala Sitharaman unveiled a simplified GST structure with two tiers, 5% and 18%, replacing the earlier four-slab system.Items of daily use such as soaps, shampoos, toothpaste, kitchenware, bicycles and household articles will now attract 5% tax, while essentials like UHT milk, paneer, and Indian breads have been brought under the nil rate. The changes will take effect from September 22, coinciding with Navratri.Industry leaders say the move will boost demand ahead of the festive season. “This is a game changer. Barring sin goods, almost all food items are in the 5% tax slab,” said Mayank Shah, vice-president at Parle Products. Dabur CEO Mohit Malhotra added that the reform would act as a “powerful catalyst” for rural and semi-urban demand.
According to revenue secretary Arvind Shrivastava, the rationalisation, estimated to cost the Centre and states Rs 48,000 crore, remains fiscally sustainable. He stressed that rate cuts are expected to improve compliance and generate buoyancy.With exemptions on food items and life-saving drugs, along with reductions on medicines, household goods and consumer staples, the GST overhaul has been described by experts as “GST 2.0.” Deloitte India’s Mahesh Jaising noted that the reform will “bring much-needed relief to households” and curb disputes over tax classifications.
