AP Chambers hails two-slab GST proposal of the Central Govt

Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has welcomed the Union Government’s proposal to move towards a simplified two-slab GST structure.

This move marks a significant step towards simplification, transparency, and efficiency in our taxation system. It is a much-needed reform that promises to reduce compliance burden and bring clarity to the tax regime, AP Chambers president Potluri Bhaskara Rao, said.

AP Chambers, for many years, has been requesting the Union Government to rationalise the GST slabs and bring down the slab rates for key sectors. A simplified GST with fewer rate slabs will not only ease tax compliance for businesses, especially MSMEs, but also reduce classification disputes, promote consistency, lower operational costs, and enhance revenue predictability.

This reform comes at a crucial time for the MSME sector, which has been under considerable distress due to rising input costs, regulatory challenges, and market uncertainties. It provides much-needed relief, enabling MSMEs to recover and grow. It reflects the government’s commitment to fostering a more business-friendly environment while ensuring fairness and inclusivity in tax administration, he stated.

AP Chambers urged the Union Government that critical sectors like food processing, textiles, handicrafts, and rural industries be included under the lower 5% GST slab to further support employment, affordability, and rural development.

A simplified GST structure, combined with sector-sensitive taxation, can pave the way for a more balanced and robust economy. The Chambers opines that this is a vital opportunity to not only simplify taxation, but to ensure that India’s small businesses, which are the engines of job creation, are empowered and strengthened for the future.

AP Chambers welcomed the proposal to streamline India’s GST framework into a two-slab structure and looks forward to the implementation of this forward-thinking initiative and remain optimistic about its positive impact on economic growth and ease of doing business in India, stated Rao and B. Raja Sekhar, general secretary of AP Chambers.