Udupi: The recent revision of the Goods and Services Tax (GST) structure has been described as a “new revolution in the country’s tax system,” with promises of relief for the poor and middle class as well as a boost to domestic manufacturing.
Karnataka State Chamber of Commerce and Industry Director Andaru Deviprasad Shetty welcomed the central government’s decision and called upon manufacturers to ensure that the concessions are passed on to the common man.
Major GST changes welcomed
Shetty highlighted that the revision has brought 99% of daily necessities under the 5% tax bracket, while luxury items, previously taxed at 28%, have now been capped at 18%. Additionally, personal medical insurance and life insurance have been made tax-free, a move seen as significant for household savings.
“These measures will reduce the burden on families, make essential commodities more affordable, and provide a major push to the domestic manufacturing sector,” Shetty said. “Commerce and industry openly welcome these reforms.”
Background of GST implementation
Tracing the journey of GST, Shetty recalled that the One Nation, One Tax system was launched in 2017 with a four-tier structure to simplify tax compliance for consumers and businesses.
He noted that the GST regime has consistently increased tax inflows, averaging ₹2 lakh crore in collections every month, proving its effectiveness as a robust revenue system. The latest revision, he said, is a natural progression of this success, aligning the tax system more closely with public needs.
“By excluding cheap goods from higher brackets and reducing the tax rate on luxury cars and products, the government has fulfilled its promise of reforms that benefit every section of society,” he added.
Call to manufacturers and traders
Shetty urged traders, entrepreneurs, and manufacturers to register under the GST law in larger numbers and take full advantage of the reforms. He emphasised that the real benefit of the government’s decision would only be realised if the price reductions reach end consumers.
“GST reforms are not just for revenue generation but for public welfare. Manufacturers must ensure that reduced tax rates are reflected in the cost of goods so that the concessions truly benefit the poor and middle class,” Shetty stressed.
Support from industry representatives
The press conference also saw the participation of Diwakar Shetty, state representative of the Udupi District Tax Association, and Walter Saldana of the Udupi District Chamber of Commerce and Industry, both of whom expressed their support for the revised GST structure.
They echoed the view that the reforms would help ease inflationary pressures, promote business confidence, and encourage investment in the domestic sector.
Conclusion
The GST revision has been projected as a transformative step in India’s taxation system, striking a balance between economic growth and consumer welfare. As industry leaders noted, its success now depends on effective implementation by businesses and traders in ensuring that the benefits reach the common man.