After the implementation of the recent reduction in GST rates on as many as 178 items, the markets across the country have started witnessing a noticeable uptick in consumer sentiments. The GST rate on these items has been brought down from 28% to 18%. Prices of the raw materials used in various industries have been slashed after the rationalisation of GST slabs.

Industry bullish on recalibration of GST rates

Consumers apart, India Inc. is also very bullish on the windfall gain that this GST overhaul has offered. The industry veterans have observed that bringing down the tax rate across a wide spectrum of products is a welcome move that will not only reignite sales, but also help bring the industry back on high growth trajectory.

Mr. Arush Gupta, Director, Okaya said, “We welcome the GST Council’s move of bringing considerable reduction in GST rates on some of the widely used daily consumption goods. Instilling much needed positivity in the market, the move will enable all the leading players to embrace the next wave of growth.”

Mr. Rakesh Zutshi, President, ELCOMA India and Managing Director, Halonix Technologies Pvt. Ltd. commented, “With the reduced GST rates on some of its commonly used raw materials, the fast evolving lighting sector is all set to take its next big leap forward.” He added, “We look forward to launch much more innovative products in the market on the back of this major push.”

Speaking along the similar lines, Mr. Zakir Hussain, Director, Servokon Systems Limited said, “Offering much-needed respite, the reduction in GST rates will help boost consumer sentiments and drive demand for our most innovative product line. Such a favourable scenario will further create most opportune time for us to leverage our strength which we have gained over the last more than two decades of continuous research and development. We also expect to achieve stronger growth rate and expand our footprints to new territories in the coming months.”

Mr. Nitin Aggarwal, CEO, Prayag added, “We are all set to cash in on the expected rise in demand and capture the major market share on the back of lower GST rates. We truly appreciate this much progressive step that will surely help us accelerate our ongoing efforts towards launching many more state-of-the-art products for our valued customers.”

Real estate sector is also set to gain as GST rates on most widely used raw materials in it have also been slashed. “GST council has absolutely showcased its strong commitment towards revitalizing the industrial landscape of the country by reducing the prevailing GST rates on commonly used materials,” said Mr. Arjunpreet Singh Sahni, Executive Director, Solitaire Group, adding, “We look forward to much favourable scenario emerging for the entire industry in the near future.” “Any reduction in GST rates will act as a big sentiment booster for all the stakeholders of the industry. A much needed breather, this encouraging move will drive demand which will throw open a huge window of opportunity for the industry,” added Mr. Pankaj Kumar Jain, Managing Director, KW Group.

Exuding optimism over the growth prospects shown by the considerable reduction in the tax rates on mattresses and bedding products variants, Mr. Maneesh Mathur, Vice President, Sales & Marketing, King Koil India said, “Mattresses and bedding industry has already been at the cusp of a major growth trajectory in India. Such a favourable announcement of reduction in GST rates on some of the widely used raw materials by the industry will further add to its future prospects. For us, it’s truly an opportune time to realize our plans and drive the next phase of growth.”

Mr. Yogendra Pal, Country Head at Ujala Credit Cooperative Society Limited added, “Reduction in GST rates will ultimately result in steady increase in the disposable income of every household and so, we believe this move will help the individuals achieve their saving goals much faster. Ujala Credit Co-operative Society Ltd. is committed towards giving better returns on deposits while ensuring the safety of the funds of the depositor.”

“It is heartening to witness that GST Council has initiated one-of-a-kind reform process by reducing the GST rates on a slew of consumer goods. We believe, the entire economy will receive a major shot in the arm through this highly welcome move to revise the GST rates to realistic levels,” concluded Mr. Lalit Chaturvedi, General Manager- Marketing, Kyocera Documents Solutions India.