The Confederation of Indian Industry (CII) has hailed the forthcoming reforms to the Goods and Services Tax (GST) announced by Prime Minister Narendra Modi during his Independence Day address from the Red Fort.Chandrajit Banerjee, director general of CII, said in a statement, “On behalf of Indian industry, CII warmly welcomes the Hon’ble Prime Minister’s visionary announcement of next-generation GST reforms. This landmark step reflects the Government’s deep commitment to building a simpler, more transparent, and growth-oriented tax regime that will empower businesses and benefit consumers alike.”As per news agency ANI, the Prime Minister revealed that a high-powered committee will be set up to review and recommend comprehensive changes to the GST framework. CII called the move “timely and forward-looking”, noting it would help the tax system keep pace with India’s fast-changing economy while ensuring stability for investors and entrepreneurs.The industry body welcomed several long-standing suggestions it had championed, including a shift towards a two-rate structure, alongside a separate rate for demerit goods, to simplify the system. CII also backed the correction of inverted duty structures in manufacturing, the reduction of compliance requirements for MSMEs, and the assurance of stable tax rates to boost investor confidence.Banerjee said these measures could significantly improve ease of doing business, cut costs, and speed up economic formalisation and digitisation. The proposed rationalisation of rates, lowering taxes on essential items and adjusting higher rates for luxury and sin goods, was described as a “balanced approach of equity and efficiency” that would benefit both consumers and government revenue.Since its launch, GST has unified India’s market, reduced tax cascading, and created a technology-driven compliance process. According to CII, the reforms mark the beginning of a “GST 2.0” era, aligned with global standards and supportive of India’s $5 trillion economy target.According to ANI, government sources stated that the Centre is considering removing the 12% and 28% GST slabs, retaining only the 5% and 18% rates. Around 99% of items in the 12% category could move to 5%, and nearly 90% of goods in the 28% slab may shift to 18%.CII praised the inclusive approach of the government and pledged to work with the finance ministry, GST Council, and stakeholders for smooth implementation. “These measures will strengthen India’s economic foundations, enhance investor confidence, and position the country among the world’s most competitive and resilient economies,” Banerjee concluded.