Corporate and industry bodies across sectors have welcomed the GST rate rationalisation announced by Union Finance Minister Nirmala Sitharaman, terming it a forward-looking reform that will simplify the tax structure, boost economic activity, and ease the burden on consumers.Commercial vehicle major Ashok Leyland said the shift to a streamlined two-tier system of 5% and 18% will ease compliance, uplift consumer sentiment, and lower costs for the common man. MD and CEO Shenu Agarwal said the move would also mitigate the impact of US tariffs on Indian imports and spur demand for buses and trucks, providing direct relief to the commercial vehicle industry.
Healthcare provider Aarthi Scans and Labs welcomed the reduction of GST on diagnostic kits, reagents, glucometers and test strips from 12% to 5%. Founder and MD V. Govindarajan called it a progressive step that will reduce patient costs, encourage timely testing, and promote better health outcomes. He also highlighted the exemption of GST on health and life insurance, which he said would ease financial stress on families and expand insurance coverage.
In the real estate sector, CBRE Chairman and CEO (India, South-East Asia, Middle East, and Africa) Anshuman Magazine said the reduction of GST on cement and construction materials would lower project costs by 40ā45%, improving affordability for homebuyers and giving a boost to housing demand ahead of the festive season. He added that the move supports the governmentās vision of infrastructure-led growth.
Real estate body CREDAI also welcomed the reforms but noted the direct impact would be minimal. President-elect Mehul H. Doshi said the reduction of GST on cement from 28% to 18% will marginally lower construction costs and apartment prices. He added that lower GST on consumer goods will leave more disposable income with households, indirectly driving housing demand. However, he expressed disappointment that CREDAIās demands for raising the affordable housing threshold and rationalising the 5% GST without ITC on apartments were not addressed.
Overall, industry leaders hailed the GST reforms as timely, forward-looking measures that would simplify compliance, reduce costs, and create momentum across multiple sectors of the economy.