Here's how political leaders, India Inc reacted to new GST rate reforms

Nirmala Sitharaman announces sweeping GST rationalisation, hailed as a Diwali gift. Industry and political leaders call the move historic, with praise for easing costs and boosting growth

Union Finance Minister Nirmala Sitharaman on Wednesday announced a sweeping rationalisation of GST rates, aimed at easing the burden on households, farmers, businesses and the healthcare sector. Branded as the “Next-Gen GST Reform” and presented as a Diwali gift, the move was cleared at the 56th GST Council meeting. The decision merges the 12 per cent and 28 per cent slabs into the 5 per cent and 18 per cent categories, reducing the system to two broad rates. The reform has drawn support from political leaders, industry representatives and economists alike.

  Following the Centre's landmark decision to slash and rationalise GST rates under the NextGen GST framework, Mahindra Group Chairman Anand Mahindra on Wednesday urged for "more and faster reforms" to boost consumption and investment to stimulate the Indian economy further. 

Meanwhile, Mahindra Group CEO & MD Anish Shah said, the next-generation GST reforms mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system. Shah said the Mahindra group views these reforms as transformative as it simplifies compliance, expands affordability, and energises consumption, while enabling industry to invest with greater confidence.

 

Industrialist Harsh Goenka has called the recent Centre's decision to slash and rationalise GST rates under the NextGen GST framework a "big Diwali gift" for every Indian. In a post shared on X, Goenka said, "Big Diwali gift for every Indian! GST on daily essentials, healthcare, education & farming inputs slashed. Cheaper groceries, Relief in healthcare, Affordable education, Support for farmers."

India Inc on Thursday hailed the GST Council's "forward-looking decisions", moving to two rates of 5 per cent and 18 per cent from 22 September, simplifying refunds and MSME procedures, and exempting individual life and health insurance from the indirect tax regime. CII Director General Chandrajit Banerjee said, "This move on GST reforms is a phenomenal milestone. By lowering rates on everyday items and critical inputs, the reforms provide immediate relief to families and strengthen the foundation for growth".

Former NITI Aayog CEO Amitabh Kant hailed the GST rationalisation by the Centre and called it a "bold and visionary step". Sharing an X post on Wednesday, Kant wrote, "A landmark reform. The reduction of GST rates to just 5 per cent and 18 per cent is a bold and visionary step. Simplifying the structure, rationalising rates and eliminating inverted duties will boost consumption, raise capacity utilisation, and drive fresh investment." 

  Deloitte India said the GST revamp that slashes tax rates on goods and services into a simplified two-slab structure addresses deeper structural changes, prioritising the "real drivers of the economy." Mahesh Jaisingh, Partner & Indirect Tax Leader at Deloitte India, said the 56th GST Council meeting signals a strong reformist intent, going beyond mere rate rationalisation to address deeper structural changes and ease of doing business.

Leaders across parties react to GST rate cuts  The Trinamool Congress on Wednesday termed the Centre's decision to exempt life insurance and health insurance from GST a victory for common people, which it claimed was wrested from a tone-deaf regime that only listens when forced. A victory for common people. A victory wrested from a tone-deaf regime that only listens when forced. From day one, Smt.@MamataOfficial warned the Finance Minister that taxing insurance premiums was cruel, anti-people, and would deter families from securing their future, leaving them vulnerable to financial ruin in times of crisis, the Mamata Banerjee-led party said in a post on X. The ruling party in West Bengal also claimed that the Narendra Modi government finally buckled under pressure.  External Affairs Minister S Jaishankar lauded the new GST reforms, calling it a "historic achievement" and a significant milestone in India's ongoing transformation. In a post on X, the EAM, while congratulating Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, stated that the government's decision would enhance the ease of living and business in the country. 

 

Union Home Minister Amit Shah also lauded Prime Minister Narendra Modi for the GST reforms and called it a "historic decision" to cut tax rates. Shah said that the GST reforms will bring "huge relief" to the poor, middle class, farmers, MSMEs, women and youth.

Meanwhile, Union Minister Piyush Goyal welcoming the new reforms, shared a post on X stating that the GST Council's decision is aimed at promoting ease of living and supporting farmers, MSMEs, the middle class, women, and youth. "PM Narendra Modi ji's historic Diwali gift for all! Heartiest congratulations to PM Modi ji and FM Nirmala Sitharaman ji on the introduction of the Next Gen GST reforms, duly supported by the GST Council in line with the Union Government's proposals on GST rate cuts and reforms," he said.  Railways Minister Ashwini Vaishnaw wrote on X, "Historic Next-Gen GST Reforms. PM Narendra Modi Ji's gift for the coming festival season - cutting costs, easing lives, and powering Aatmanirbhar Bharat (self-reliant India)."

Meanwhile, Union Health Minister JP Nadda said that the reduced tax rates will enhance ease of living and help families manage costs.  Chief Ministers across NDA-ruled states also lauded Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the GST reforms. Uttar Pradesh Chief Minister Yogi Adityanath on Thursday called the tax reforms "transformative measures" for citizens and entrepreneurs.

Backing the tax reforms, Delhi CM Rekha Gupta said that PM Modi fulfilled the promise he made on August 15 regarding the tax reforms. Calling it "historic", Maharashtra CM Devendra Fadnavis lauded the move to remove the 12 per cent and 28 per cent GST slabs. Assam CM Himanta Biswa Sarma also thanked PM Modi for the tax reforms. Meanwhile, Andhra Pradesh CM N Chandrababu Naidu wrote on X, "We welcome the GST reforms with revised slabs across daily essentials, education, healthcare, and agriculture. This pro-poor, growth-oriented decision will benefit all sections of society, from farmers to businesses."