Page 29 - NIS English 01-15 October, 2025

New GST Reforms of New India | COVER STORY

procedures are being streamlined for small businesses,
exporters, and startups. These reforms reflect the
central government’s “Jan Seva Abhiyan” (People First) According to a recent report
philosophy, which aims to simplify life for citizens, by CRISIL Intelligence, the
empower businesses, and move towards an Aatmanir- reduction in GST rates is expected
bhar Bharat (Self-reliant India). The central government to boost revenue for Indian
is not merely implementing reforms on paper; it is ac- companies by 6-7% this fiscal year.
tively working to ensure that benefits and concessions This reduction is likely to lead to
reach the consumer directly. By ensuring that every a 5-6% increase in two-wheeler
saving and every relief measure reaches the consumer, sales, while also resulting in a
the central government is strengthening trust between 3.5-4.5% decrease in construction
shopkeepers and customers, and between businesses costs for housing projects.
and citizens.
The country’s GDP is over Rs 330
PANCH RATNA (FIVE GEMS) OF REFORMS lakh crore, of which Rs 202 lakh
According to Prime Minister Narendra Modi, the GST crore represents consumer spending.
reforms in essence have added five precious gems If consumer spending increases by
to India’s robust economy. First, the tax system has 10% following the GST cuts, this
become much simpler. Second, the quality of life for would generate an additional Rs
Indian citizens will further improve. Third, both con- 20 lakh crore in demand, thereby
sumption and growth will receive a fresh boost. Fourth, stimulating production, employment,
ease of doing business will encourage investment and and overall economic activity.
job creation. And fifth, cooperative federalism—the
partnership between the states and the central govern-
ment—will pave the way for a Viksit Bharat. The implementation of GST
To truly appreciate these reforms, it is necessary to is a significant step towards
look back at the past. There was a time when people economic reform in the country.
had to pay exorbitant taxes on a wide range of goods. After 70 years, the country
Whether it was household items, agricultural products,
medicines, or even insurance, many things were subject has moved forward, leaving
to multiple taxes. Toothpaste, soap, oil, etc., were taxed behind the inefficiencies and
up to 31%. Plates, spoons, and other tableware were constraints that had plagued
taxed between 18% and 28%, while children’s candies the business environment. The
were taxed at 21% and bicycles at 17%. Medical treat- GST has ushered in a new era of
ment and tests, along with travel and hotel bookings, transparency.
also incurred high taxes. Even buying a TV, AC for the
home could have cost up to 31% in taxes. Essential Narendra Modi, Prime Minister
farm equipment was also subject to taxes ranging from
12% to 14%. But all that is now history. Since 2014, the
central government has initiated and resolutely imple-
mented reforms that have made life easier for citizens.
Taxes have been reduced for startups, MSMEs, and
small businesses, and certain procedures have been
simplified, thereby easing the challenges faced by them.

AN EXEMPLARY CASE OF TEAM INDIA
GST had already been implemented on a trial basis in

October 1-15, 2025 || NEW INDIA SAMACHAR 27