Business
Reactions after India cuts consumption tax on hundreds of items
Reactions after India cuts consumption tax on hundreds of items
About this update from Eternal Limited
India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods. The benchmark BSE Sensex BSE:SENSEX and Nifty 50 NSE:NIFTY rose as much 1.1% on Thursday. By 11:55 IST, they pared some gains and were up about 0.5% each.Here is how the industry has reacted:ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP "The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer and more inclusive tax system. "At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence." SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA "The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY "The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES "This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector... these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility." C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS "This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive."One area that may need earliest clarific...