FAPCCI defines GST reforms as a step towards ease of doing business

Visakhapatnam: Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) welcomed the progressive reforms announced by the Central government during 56th GST Council Meeting.

Hailing that the reforms aim at simplifying compliance, reducing litigation, and promoting transparency, FAPCCI president A Satyanarayana said the new tax reforms will go a long way in strengthening industry and trade. He appreciated the rationalisation of tax rates, simplification into a two-tier structure, reduction of GST on essential items, food products, education, healthcare, agriculture, and the exemption of life and health insurance policies. He mentioned that they will significantly benefit households and the common man.

Congratulating Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for restructuring the GST slabs, Satyanarayana stated that these reforms will enhance transparency in the taxation system. Further, he welcomed the decision to operationalise the GST Appellate Tribunal, correction of inverted duty structures in key sectors, and GST relief on the MSME-driven goods, which will provide much-needed support for growth and competitiveness in this sector.

The Council’s focus on ease of doing business, including steps to enhance the digital filing process, and provide much-needed clarity on ambiguous taxation issues was appreciated.

However, Satyanarayana expressed concern over the increase of GST on labour charges (job work services). This upward revision will have directly cascading effects on the industries and trade sector. The FAPCCI appeals to the Centre to reconsider this decision in the interest of sustaining the competitiveness of the enterprises.