New Delhi, Sep 14 Government reforms reducing Goods and Services Tax (GST) rates across sectors including automobiles, food processing, apparel, logistics, and handicrafts are designed to strengthen supply chains, promote local manufacturing, and boost employment, particularly benefiting women, rural entrepreneurs, and informal sector workers.
Reductions in GST, such as on two-wheelers and cars, increase demand for automotive MSMEs. Lowering GST on commercial vehicles and buses reduces freight and operational costs, benefiting MSME truck owners and fleet operators. Cuts in GST on food items and dairy products, including milk and paneer, support
MSMEs in food processing, regional brands, and dairy cooperatives. Changes to GST on textiles and garments, with a broader slab for readymade garments, aim to enhance competitiveness for MSME textile manufacturers and stimulate demand.
Reductions on leather products and cement are also noted, with the latter expected to lower housing costs and boost related sectors. Overall, these GST adjustments are intended to make essential goods, raw materials, and services more affordable, encouraging SMEs and startups to scale, innovate, and compete, thereby fostering economic inclusion.
