Prayagraj: Confederation of All India Traders (CAIT) has termed GST reforms and restructuring of tax rates as historic and revolutionary. According to CAIT, these reforms will not only benefit small traders, consumers and the Indian economy but this step will simplify the tax structure and give new impetus to the country’s economic activities and trade by increasing consumption substantially.
Mahendra Goyal, President of CAT Uttar Pradesh, while thanking Prime Minister Shri Narendra Modi on behalf of the traders of the country, said that the reforms of reducing taxes on more than 400 items will provide great relief to the common man in his daily expenses and the tax system will also become more efficient. This is indeed a big Diwali gift to the country from Prime Minister Shri Modi.
Mahendra Goyal said that according to a recent report by the State Bank of India (SBI), these GST reforms will lead to a significant increase in domestic consumption. The report estimates that consumption will increase by 7–8% in the upcoming festive season. This increase in consumer spending will directly benefit the retail trade and sales of small shopkeepers.
Ashish Kesari says that the government has given a big relief to the middle class and senior citizens by exempting insurance services from GST. This will make the premium rates of health and life insurance more affordable. After the pandemic and amid the ever-increasing health costs, this step will prove to be very important for common families and will encourage insurance coverage.
Senior Vice President Ajay Gupta said that these reforms will bring multi-dimensional benefits to the country. Lower GST rates will encourage consumers to shop more, which will increase market demand, while small shopkeepers, retailers and wholesalers will directly benefit from the increasing demand. Due to increased consumption, industries will have to increase production, which will increase employment and industrial activities. Simplification of tax rates will make GST compliance easier and cheaper.
Having two major rates will improve tax collection and bring stability in the business world. Rajesh Aggarwal said that experts believe that these reforms will have a direct impact on India’s GDP. The boom in consumption and industrial production can lead to an additional 0.5% to 0.7% increase in GDP in the coming financial year. This will also increase government revenue and India’s global economic position will be further strengthened. Ashutosh Goyal said that these reforms are not just changes in tax, but are a golden chapter of India’s business and a big step towards self-reliant India. In the coming time, its effect will be clearly visible not only on small traders but on the economic progress of the entire nation.
