GST Rate Cut Reactions India LIVE: Orient Electric CEO hails GST cuts as festive season booster

Abhay Parnerkar, CEO of Godrej Foods Limited, welcomed the government’s recent GST rationalisation, calling it a progressive step that benefits both consumers and the food industry.

“The rationalisation of GST for frozen foods and meats is a progressive move that will uplift the entire category. It makes nutritious and hygienic options like Godrej Yummiez more accessible, while promoting smarter food habits and reducing wastage,” he noted. He added that the reforms would encourage innovation, expand distribution, and strengthen consumer trust in frozen food as a mainstream choice.

Parnerkar also highlighted the wider economic impact of the changes. “The decision to reduce GST on frozen foods and meats, and to exempt Indian breads altogether, strengthens consumer confidence and industry momentum. Lower taxation will enhance affordability, expand retail access, and reinforce value creation across the farm-to-fork ecosystem, boosting farmer incomes and supporting a future-ready food economy.”

Ravindra Singh Negi, Managing Director and CEO of Orient Electric, has lauded the government’s landmark move to rationalise the Goods and Services Tax (GST) structure, calling it a “timely reform” ahead of the festive season.

He highlighted that the shift towards a simplified tax regime would directly benefit consumers through reduced prices of household essentials. “Lower GST rates on consumer goods will not only enhance affordability but also encourage families to adopt modern and energy-efficient electrical solutions,” Negi stated.

The GST cuts on construction materials were described as another significant stimulus. With real estate and infrastructure expected to see increased activity, demand for lighting, fans, and electrical products is set to rise.

Confident of meeting the anticipated surge, Negi affirmed Orient Electric’s readiness to support growth, adding that the reforms would drive volumes, lift consumer sentiment, and contribute to a prosperous festive season.

Welcoming GST announcements by the Ministry of Finance, Shailesh Chandra, President, SIAM, said, “Automobile Industry welcomes the Government’s decision to reduce the GST on vehicles to 18% and 40%, from earlier rates of 28% to 31% and 43% to 50%, respectively, especially in this festive season. This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian Automotive sector. Making vehicles more affordable, particularly in the entry-level segment; these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility.”

Jitin Makkar, Senior Vice President and Group Head, Corporate Sector Ratings at ICRA Limited said that airlines will pass the surge in GST on air travel tickets to the consumers but it “should not have a significant impact on the business class segment”.

“The GST on premium/ business/ first class air travel has been increased to 18% from 12%, which the airlines will pass on to the consumers. However, this should not have a significant impact on the business class segment considering this segment’s low price elasticity, though there could be some amount of downtrading to the economy segment. The GST rate for economy class tickets has been retained at 5%. By keeping rates stable for economy travellers, this measure is likely to ensure continued affordability, thus making air travel more accessible,” Makkar said.

Shobana Kamineni, Executive Chairperson of Apollo Healthco, hailed the government’s GST reforms as transformative for healthcare access. Calling the exemption of health and life insurance from GST a “masterstroke,” she said it turns protection into a right rather than a privilege.

Kamineni added that reductions in GST on medicines and medical supplies will ease household budgets and bring affordable care within reach of millions.

She emphasised that by centring empathy and the middle class, the reforms will allow more families to access healthcare with dignity. Apollo Healthco, she said, is committed to driving prevention-focused healthcare for a stronger Vikshit Bharat.

Radhika Rao, Senior Economist at DBS Bank in Singapore, said the government’s decision to lower GST rates would provide a boost to growth in the second half of this year and FY27.

She added that the reforms would enhance operational efficiency while expanding the size of India’s formal economy.

Mr Sombrata Ray, Unit Head at CMRI Kolkata, welcomed the government’s progressive GST reforms, highlighting their role in easing healthcare costs for patients and families.

“The removal and reduction of GST on essential medicines, medical devices, and health insurance will directly reduce the financial burden,” he said. At CK Birla Hospitals – CMRI Kolkata, the mission remains to deliver affordable, high-quality care.

Ray added that the reforms would make life-saving drugs, advanced treatments, and preventive care more accessible to a wider population. He expressed optimism that such policy changes will accelerate India’s path toward equitable and sustainable healthcare.

Patanjali Foods CEO Sanjeev Asthana said the company will fully pass on the benefits of GST rate cuts to consumers. He noted the move would boost FMCG penetration across urban and rural India, spurring wider consumption. Categories such as ghee, soaps, biscuits, noodles, honey and chyawanprash will see price relief.

Kotak Mahindra Asset Management MD Nilesh Shah hailed the GST reforms, calling them a balanced move that curbs inflation while fuelling growth. He said the decision would boost consumer confidence, simplify business processes, and maintain fiscal discipline, while also cushioning the economy against tariff shocks.

Congress leader Pawan Khera on Thursday attacked the Centre over its “delayed” GST reforms, claiming the government finally acted on Rahul Gandhi’s long-standing advice after eight years.

Sharing Gandhi’s earlier posts demanding an 18% GST cap, Khera asked why the BJP took so long to follow it. Gandhi had stressed that a capped GST rate would protect the poor from inflationary pressures.

Echoing this, senior Congress leader P Chidambaram also criticised the reforms as coming “8 years too late”.

The Opposition maintained that the Congress had always backed a simpler, non-inflationary GST framework since introducing the concept in 2005.

Mahindra Group CEO & MD Anish Shah hailed the “NextGen GST” reforms as a defining moment for India’s tax regime.

Calling them transformative, he said the move simplifies compliance, expands affordability, and boosts consumption, while giving industries greater confidence to invest.

He emphasised that the reforms reflect India’s shift towards a simpler, fairer, and inclusive tax system.

Mother Dairy on Thursday announced it will pass on the benefits of reduced GST rates on dairy products to consumers. The company, which recorded a turnover of Rs 17,500 crore in the last fiscal, welcomed the GST Council’s decision to slash rates on paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams.

Managing Director Manish Bandlish said the move would boost affordability, accessibility, and demand for packaged value-added dairy products, while also creating stronger market opportunities for farmers.

He assured that Mother Dairy remains committed to ensuring consumers enjoy wholesome, safe, and quality dairy at better value.

The TMC has claimed credit for the government’s decision to exempt life and health insurance policies from Goods and Services Tax (GST). She also said that the recently announced GST reforms are a move to ease Donald Trump’s 50% tariff pressure.

In a post on X, TMC MP Mahua Moitra said the move followed persistent pressure from party supremo and West Bengal Chief Minister Mamata Banerjee.

Read More At: TMC will fight anti-people policies’: Mahua Moitra claims Mamata Banerjee’s credit for GST rollback on health insurance

Congress president Mallikarjun Kharge on Wednesday accused the Modi government of betraying the promise of “One Nation, One Tax” by creating a web of multiple GST slabs. He argued that the Goods and Services Tax, which the Congress had first proposed in 2005 under the UPA, was distorted by the BJP into what he termed “One Nation, Nine Taxes”.

Kharge reminded that the Congress had consistently demanded a simplified GST framework in its 2019 and 2024 manifestos, pressing for rationalisation and easier compliance. He said the existing system has hit MSMEs and small businesses the hardest, forcing them into complex paperwork and higher costs.

Criticising the government’s record, Kharge said the BJP imposed GST on essential items such as milk, curd, grains, books, pencils, oxygen and insurance. For the first time, farmers were also taxed, with 36 agricultural products brought under GST.

“Two-thirds of GST comes from the poor and middle class, while billionaires contribute barely 3%,” he alleged, dubbing the levy “Gabbar Singh Tax”.

While welcoming the recent rationalisation, Kharge insisted that states be fully compensated for losses, arguing the government’s delayed reforms came only after sustained opposition pressure.

Mahindra Group Chairman Anand Mahindra hailed the Centre’s landmark “NextGen GST” reforms as a step towards boosting consumption and investment but urged the government to push ahead with “more and faster reforms.”

Quoting Swami Vivekananda’s call to “arise, awake, and stop not till the goal is reached,” he stressed the need for continued momentum to expand India’s economy and global voice.

The GST Council’s decision to rationalise rates into two slabs—5% and 18%—was welcomed across industry, with Mahindra executives highlighting benefits for affordability, farming, clean mobility, and inclusive growth. Other business leaders also praised the reforms’ citizen-first approach.

Welcome to out LIVE blog on GST reactions from industry leaders.