Page 30 - NIS English 01-15 October, 2025

COVER STORY | New GST Reforms of New India

Easing Business for Industry & MSMEs

Development

Now Faster Than Ever

Under GST 2.0, only two tax slabs, easy refunds,
and simplified rules will make doing business
easier and reduce input costs. The revised GST
rates will also boost the “Make in India” initiative...

Empowering MSMEs Price Cut on

n Registration and return filing have been Electronics
simplified, and refunds will be available easily.

n Compliance costs have been reduced, easing the n The GST rate on
burden on businesses, especially MSMEs and all LCD/LED
startups. TVs, monitors
Affordable Homes for All reduced from 28%
to 18%
The GST rate on cement has been reduced from 28%
to 18%. The GST rate on marble/travertine blocks,
granite blocks, sand-lime bricks(including its job BENEFITS: This
work), bamboo flooring/joinery, packing cases, and will strengthen
pallets (wooden) has been reduced from 12% to 5%. India's electronics
BENEFITS: The cost of manufacturing
housing and infrastructure ecosystem, while
projects will decrease, making allowing consumers
home ownership more to spend less on
affordable. Increased demand these products.
in the real estate sector will
create new employment
opportunities.

several countries across the world. However, develop- in his budget speech that GST would be implemented
ing an Indian model required careful consideration of from April 1, 2010, but this was not possible. The first
numerous factors. India is a union of states, where both discussion paper, outlining the features of GST, was
the centre and states need to be financially robust. India released in November 2009. The bill was introduced
is not a confederation of states; therefore, the financial in March 2011, but political consensus could not be
strength of the states cannot be enhanced at the cost of reached, and the bill lapsed with the dissolution of the
the central government’s revenue. The foundation for 15th Lok Sabha. The process was accelerated after the
unifying the country’s markets was laid in 2000 by then new government came to power in 2014. The bill was
Prime Minister Atal Bihari Vajpayee. He constituted a introduced in December 2014 and passed by the Lok
high-level panel to develop a GST model that would be Sabha in May 2015. The Rajya Sabha decided to send
entirely suitable for India’s diversity and complexity. the bill to a select committee. The committee submit-
Then, in 2006, the Union Finance Minister proposed ted its report on July 22, 2015. Following this, with

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