'Bold step': Body representing small scale industries hails GST 2.0 reforms

New Delhi, Sep 4 (IANS) Laghu Udyog Bharati (LUB), a organisation representing small scale industries, on Thursday hailed the new GST rate structure as a critical pillar for nation-building and a bold step toward creating a self-reliant Viksit Bharat.

The organisation’s president, Ghan Shyam Ojha, said: “The rationalised rate slabs of 5 per cent and 18 per cent, effective from September 22, mark a transformative shift in India's indirect taxation system.”

“Laghu Udyog Bharati (LUB) wholeheartedly welcomes the historic GST 2.0 reforms announced by Prime Minister Narendra Modi during his address from the Red Fort on August 15, followed by the GST Council's approval of a simplified two-tier GST rate structure on Wednesday,” he said in a statement.

In a statement by LUB’s regional office in Nagpur, Ojha said: “We commend the visionary leadership of PM Modi and the prudent guidance of Finance Minister Nirmala Sitharaman in ushering in this long-awaited reform.”

“We see these reforms as a critical pillar in nation-building and a bold step toward creating a vibrant, self-reliant Viksit Bharat,” he added.

He said that the decision to streamline tax rates, while ensuring that the Ministry of Finance absorbs the short-term revenue loss, demonstrates a strong commitment to economic growth, consumer welfare, and nation interest.

“This reform is truly path breaking. It goes beyond mere rate rationalisation and signals a major stride towards ease of doing business, particularly for Micro and Small Enterprises (MSEs) Lower working capital requirements, more affordable raw materials, and access to a wider market will provide a significant boost to small industries,” said Ojha.

In a joint statement with Ojha, LUB’s All India General Secretary Om Prakash Gupta said: “We particularly welcome the focus on smoother registration, faster refund processing, and reduced compliance burden, which will collectively uplift India's industrial base and create a more conducive environment for entrepreneurship and innovation.”

“Laghu Udyog Bharati pledges its full support to the government in ensuring the smooth and timely implementation of this reform. Our member units are committed to passing on the benefits of this rationalisation to the end consumers, thereby, aligning with the PM's vision of ‘Atmanirbhar Bharat’ and ‘Make in India Movement’,” he said.

Gupta noted: “These GST 2.0 reforms will not only benefit industries but also ensure that the ultimate consumers enjoy the positive impact through lower prices and improved access to goods and services.”

We believe this rate structure, combined with the stability and clarity it offers, will significantly reduce litigation, enhance compliance, and stimulate consumption, setting the stage for robust, inclusive economic growth, he said.

--IANS

rch/pgh