GST 2.0: Great sense (of) timing

For the past few weeks, the economic discourse on tackling tariff hikes and the steps needed to overcome the resulting challenges from a potential dent in export demand has kept Indian businesses on their toes. Against this backdrop, the announcement of an imminent cut in GST rates has lifted trade sentiment, pushing many back to the drawing board to prepare for a likely surge in domestic demand driven by increased affordability.

The move to a two-rate GST structure, coupled with a simplified compliance framework, has been a long-standing demand of business since 2017, when the government ushered in one of the greatest tax reforms since Independence. Moving closer to that aspiration would bring immense satisfaction.

But first, all affected businesses will need to revamp their pricing, logistics, IT and related systems to prepare for the largest changeover since GST was introduced.

Accompanying upgrades to the GST portal will follow to manage changes in rates and processes and the expected surge in transactions once the reforms take effect. The announcement on Independence Day, with the likelihood of a rate reduction before Diwali, reflects a Great Sense of Timing for the next stage of GST reforms.