GST reforms a big boost for consumption-led growth, says Mukesh Ambani

Reliance Retail plans to pass on the benefits of lower tax rates to customers across all its consumption baskets, said Executive Director Isha Ambani

The retail arm of oil-to-telecom conglomerate Reliance Industries (RIL) on Thursday said it would pass on the benefits of sharply reduced goods and services tax (GST) rates to consumers. Chairman Mukesh Ambani lauded the Centre’s reforms, calling them a driver of consumption-led growth.

 

“The Goods and Services Tax (GST) rationalisation is a progressive step towards making products and services more affordable for consumers, easing operational complexity of doing business, lowering inflation and driving consumption growth across the retail sector,” Ambani said in a statement. He added that the latest tax reforms would be a positive catalyst for the Indian economy.

 

GST overhaul announced

 

On Wednesday, the government unveiled a sweeping reform of India’s GST regime, collapsing the previous five-tier structure into two slabs of 5 per cent and 18 per cent, along with a higher, special 40 per cent tax on luxury and ‘sin’ products such as tobacco, cigarettes and gutkha.

 

All essential staples like UHT milk, packaged paneer and common Indian breads (including roti, paratha, parotta and even pizza bread) have been shifted to a zero-tax category to ease household budgets.

 

The new rates will take effect on September 22, ahead of the festive season, which includes Navratri, Dussehra and Diwali, when Indian households traditionally increase spending.

 

Reliance Retail’s commitment

 

“The new GST regime, as a transformative step, brings relief to household budgets and simplifies compliance for the industry, creating a unique win–win for both consumers and businesses. Reliance Retail is committed to pass on the entire benefit of the new GST regime to customers from Day 1 across all its consumption baskets,” said Isha Ambani, executive director at Reliance Retail Ventures Ltd.

 

Several goods previously taxed at 12 per cent or 18 per cent — including butter, ghee, cheese, condensed milk, snacks, pasta, baked foods, chocolates, dried fruits and nuts, and personal hygiene items like shampoos and toothpaste — will now be taxed at just 5 per cent, making them more affordable.

 

Relief for consumers

 

Reliance Retail said it would ensure consumers immediately benefit from lower costs. “Reliance Retail is fully committed to ensuring that the entire benefit of this reform reaches our customers transparently and without any delay. Our pledge is simple: whenever costs go down, our customers must get the benefit in their wallets,” Isha Ambani said.

 

The company added that the reforms would create opportunities for all stakeholders in the retail value chain, including farmers, MSMEs, producers, suppliers, kiranas and consumers.