USIBC lauds India's GST reforms, calls it a boost for business and investment sentiment

The simplification is part of the "Next-Generation GST" reform initiative, designed to boost affordability, consumption, and economic efficiency

The US-India Business Council (USIBC) has extended its appreciation to Prime Minister Narendra Modi, the GST Council, and the Ministry of Finance for implementing the restructured Goods and Services Tax (GST), adding that the move will enhance the business environment and attract global investment.

In a statement, USIBC praised the rationalisation of GST slabs and reduction in tax rates across key sectors, including food, healthcare, life-saving drugs, renewable energy, and electronics.

"We commend the government's efforts to boost consumption and improve the ease of doing business in India," the statement added. The council said the reforms would significantly boost consumption, improve affordability for consumers, and benefit businesses.

"The rationalisation of tax slabs marks an important step towards building a simpler, transparent, and more efficient tax system. Such forward-looking reforms not only improve the business climate in India but also send a strong signal to global investors about the country's commitment to fostering growth and ease of doing business," the council said.

The USIBC also commended the Indian government's efforts to promote economic inclusivity and sustainability, noting that the tax changes align with broader efforts to build a robust and investor-friendly ecosystem.

It expressed optimism about the future of US-India economic ties and reiterated its commitment to working closely with the Indian government and stakeholders to build on these reforms, promote bilateral trade and investment, and support a more inclusive and sustainable economic future.

In a significant simplification in the GST regime, which will benefit the common man, Finance Minister Nirmala Sitharaman on Wednesday announced consolidation of 12 per cent and 18 per cent slabs into a dual rate structure of 5 per cent and 18 per cent, besides 40 per cent for sin goods.

The simplification is part of the "Next-Generation GST" reform initiative, designed to boost affordability, consumption, and economic efficiency.