New Delhi [India], September 7 : The recently announced GST 2.0 reforms have drawn a positive response from industry leaders across sectors, who see the overhaul as a catalyst for growth, affordability, and long-term sustainability.
From real estate and electric mobility to corporate transportation and tax advisory services, the impact of these changes is expected to be wide-ranging.
In the real estate sector, the reduction of GST on key construction materials like cement and steel is being viewed as a major boost.
Snehdeep Aggarwal, Founder & Chairman of Bhartiya Group, said, "The reduction of GST on cement, steel and related construction materials is a timely and much-needed boost for the real estate sector. Lower input costs will allow developers to invest more in superior design, modern amenities, and sustainable practices, while ensuring greater affordability for homebuyers."
"Corporate real estate too will benefit from improved cost efficiencies, making office and commercial projects more attractive for businesses and investors," he added.
The reforms also address the corporate transport ecosystem, with a sharp cut in GST on commercial vehicles from 28 per cent to 18 per cent. This is expected to enhance the viability of vehicle ownership for driver-partners and improve the scalability of corporate commute programs.
Sriram Kannan, Founder & CEO of Routematic, said, "The GST 2.0 reforms will significantly transform the corporate commute ecosystem in which Routematic operates. By reducing GST on commercial vehicles from 28 per cent to 18 per cent, more driver-partners will find it viable to purchase ICE vehicles at lower EMIs, boosting their earnings and livelihood security."
In the electric vehicle (EV) space, keeping all EVs--across segments--within the 5% GST slab without cess is being viewed as a progressive, market-shaping move.
"The government's decision to keep all EVs--whether mass market or luxury SUVs--under the 5% GST slab without any additional cess is a progressive step that will have a significant impact on adoption," Vasudha Madhavan, Founder and CEO, Ostara Advisors.
From a tax and regulatory standpoint, the three-rate GST structure and process simplifications are being hailed as a long-awaited reform.
Subroto Bose, Partner, ASA & Associates, said, "The recommendations on tax rate changes by the GST Council will have a huge positive impact on consumption and boost production."
"The 3-rate slab structure brings much-needed clarity, especially to foreign investors interested in the India growth story. Simplified GST registrations for small and low-risk businesses and sanction of risk-based provisional refunds will reduce administrative bottlenecks and facilitate trade," he added.