365telugu.com online news,Mumbai, September 6th, 2025: Commenting on the GST Council’s landmark move towards a simplified two-tier structure, C. S. Setty, Chairman, Indian Banks’ Association (IBA) & State Bank of India (SBI), said:
“The transition to a streamlined GST regime with 5% and 18% slabs, along with 40% on sin goods, represents a historic milestone in India’s indirect tax reforms. It creates a next-generation GST system that is simpler, transparent, and citizen-centric.
The shift of essential household goods from 12% and 18% to the 5% bracket will bring tangible relief to consumers by lowering costs on daily essentials and enhancing disposable incomes. This boost to spending power will naturally drive demand, fuel credit expansion, and accelerate economic growth.
The insurance sector, too, stands to benefit significantly. Lower premiums will enhance protection coverage and support deeper insurance penetration across the country. On the macroeconomic front, headline CPI is expected to ease as mass consumption goods become more affordable, benefiting households directly.
For businesses, the rationalized GST structure reduces compliance complexities, lowers operational costs, and strengthens overall competitiveness.
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While a short-term dip in revenue collections is likely, the enhanced consumption and robust economic activity generated by this reform are expected to offset the gap, leading to stronger GDP growth and healthier fiscal outcomes in the medium term.
This reform marks a defining step in evolving GST into a truly citizen-friendly, growth-oriented framework—GST 2.0—designed to power India’s journey towards becoming the world’s third-largest economy.”