GST 2.0 emerges as a game changer for inclusive growth: CII Odisha

THEBUSINESSBYTES BUREAU

BHUBANESWAR, SEPTEMBER 4, 2025

The Confederation of Indian Industry (CII), Odisha State Council, has hailed the next-generation GST reforms announced in the 56th GST Council meeting, describing them as a watershed moment in India’s tax policy. The Council’s decision to simplify the four-tier GST system into a streamlined three-rate structure — 5% merit rate, 18% standard rate, and 40% de-merit rate — has been welcomed as a bold step towards building a transparent, equitable, and growth-driven tax ecosystem under the leadership of Prime Minister Narendra Modi.

Industry leaders noted that the rationalised structure, coupled with targeted reductions in GST rates, will boost consumption, improve competitiveness of MSMEs, and foster inclusive growth across sectors.

Sunil Gupta, Chairman of CII Odisha State Council and Chief Operating Officer of Vedanta Limited, Jharsuguda, praised the government’s move to reduce GST on aluminium foil and cookware from 12% to 5%. Calling it a “bold reform,” he said the step would invigorate the aluminium industry while making household essentials more affordable for consumers.

Echoing similar sentiments, G. Suresha, Vice Chairman of CII Odisha State Council and Chief Operating Officer, Odisha Assets Operation, AM/NS India, pointed to the positive impact on the steel sector. “The GST regime has provided clarity and uniformity in the steel value chain. With GST 2.0, it becomes a true enabler of India’s industrial and infrastructure ambitions,” he remarked.

Sudhi Ranjan Mishra, Head of Corporate Affairs at Paradeep Phosphates Ltd, highlighted the wider societal benefits. He said GST 2.0 reflects the government’s commitment to ease of living by simplifying the tax structure and delivering relief on essential goods. “This reform supports farmers, MSMEs, and ordinary citizens, embodying inclusive and sustainable growth,” Mishra noted.

Beyond sectoral gains, the reforms promise far-reaching benefits for households, healthcare, and agriculture. Consumers will see reduced prices on everyday items and packaged foods, while exemptions on life and health insurance will expand access to financial protection. The healthcare sector is set to benefit from lower GST on essential drugs and medical devices, while agriculture will gain from reduced rates on farm machinery and inputs. Labour-intensive sectors such as textiles will also become more competitive, generating fresh employment opportunities.

Adding institutional strength, the creation of a GST Appellate Tribunal and faster refund mechanisms will enhance efficiency and fairness in the tax system. Together, these reforms reinforce India’s commitment to affordability, equity, and economic dynamism, laying a solid foundation for the nation’s journey towards Viksit Bharat.