Decision to make health and life insurance GST-free commendable, says PHDCCI

PHDCCI welcomes bold GST Reforms announced by the Government. The decisions taken by the GST Council mark a significant and much-needed shift toward a more simplified and rational tax structure ? something industry stakeholders have been hoping for over the past few years, the body stated. Moving to a two-slab system of 5% and 18%, with a separate 40% bracket for sin and luxury goods, is a practical move that will reduce confusion, bring more predictability to pricing, and make compliance easier for businesses across the board. It?s good to see the government taking strong steps in the direction of reform, without losing sight of fiscal responsibility.

PHDCCI also welcome the reduction of GST on personal-care items like shampoo, toothpaste, and hair oil to 5%. These are everyday essentials for millions of families, and a lower tax rate here will directly benefit consumers. Equally commendable is the decision to make health and life insurance GST-free ? a thoughtful and progressive move that supports financial protection for individuals and families. Another major positive is the simplified registration process announced for MSMEs and low-risk businesses. This could truly make a difference for small business owners who often struggle with complex documentation and red tape. Overall, we see these reforms as a strong signal that the government is listening, responding to the ground realities, and actively working to make GST a more effective system for everyone ? from consumers to corporates to small traders, it said.

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