The Federation of Indian Chambers of Commerce & Industry (FICCI) has welcomed the new GST 2.0 reforms, highlighting how these changes will make India’s tax system more predictable, transparent, and fair. The reforms, which will come into effect from September 22, 2025, include a new two-tier GST structure that aims to boost growth and benefit millions of consumers and businesses.
FICCI says these reforms will especially help labor-intensive industries, households, small businesses (MSMEs), and key sectors like healthcare, agriculture, infrastructure, and automotive. The updated tax system is designed to reduce confusion by cutting down classification disputes and fixing issues related to the inverted duty structure — a problem where import taxes are higher than domestic ones, making Indian goods more expensive.
One major change is the correction of inverted duty structures in sectors like textiles, fertilizers, and renewable energy. This move is expected to reduce India’s dependence on imports and boost the global competitiveness of Indian products. Consumers will also benefit, as GST rates on everyday items such as soaps, shampoos, toothpaste, hair oil, bicycles, and packaged foods will be lowered, easing household expenses and encouraging more spending.
Farmers will see benefits too, as lower taxes on agricultural goods will reduce costs and increase rural incomes. The reforms will help cut manufacturing and construction costs by reducing GST on raw materials like cement, industrial inputs, and renewable energy devices, supporting the government’s goal of housing for all.
FICCI President Harsha Vardhan Agarwal emphasized that while the adjustments might impact government revenue initially, the overall effect will be positive. Lower GST rates are expected to boost demand, support economic growth, and help control inflation.
In summary, these GST 2.0 reforms aim to strengthen India’s economy by making taxes simpler, fairer, and more growth-friendly. They are set to benefit consumers, small businesses, and key sectors — paving the way for a more vibrant and competitive Indian economy.
