New GST rates will cut down fraud, say industry owners in Haryana

Gurgaon: The new GST rate structure will lead to an increase in consumption, the industry association and business leaders have said, calling it a "game-changer" for industry and consumers alike.The industry body — while welcoming the new GST rate structure — has said the simplified framework will also help curb bogus input credit claims, ensuring greater transparency and strengthening India's tax system.The new GST framework introduces a two-tier structure — 5% for essential items and 18% as the standard rate — with a 40% rate for demerit goods.

According to Progressive Federation of Trade and Industry (PFTI), this move will ease compliance, bring stability to businesses and benefit common people through lower tax incidence.

By reducing GST on essentials, agriculture inputs, MSME raw materials, cement and healthcare, it directly "eases the burden" on households and farmers while lowering costs for businesses. This will boost savings, increase consumer spending, and stimulate demand across sectors. Chairman of PFTI Deepak Maini said GST on key inputs such as auto parts, industrial acids and raw materials was rationalised to 18% or 5%, cutting costs for MSMEs and strengthening Make in India.

"Uniform rates will reduce classification disputes and compliance hassles, supporting ease of doing business," said Maini.The changes will increase household savings, enabling greater spending on education, healthcare and discretionary goods. They will "stimulate" consumption demand across FMCG, automobiles and services and help curb bogus input credit claims, strengthening tax compliance and revenue integrity, the PFTI chairman said. "This will boost savings, increase consumer spending and stimulate demand across sectors," said Maini.Realistic Realtors regional director Mohit Batra said the decision to cut GST on cement from 28% to 18% is a positive move for both residential and commercial real estate. "It helps reduce costs in the mid- and affordable housing segments, while for developers of offices, retail and hospitality projects, it boosts project viability," Batra said.SPJ Group founder and CMD Pankaj Jain said for end-users, this means more accessible price points and for developers, it means healthier project economics and faster rollouts.CEO and Founder of NeoLiv Mohit Malhotra said the move is poised to accelerate project launches, boost housing demand and enhance accessibility across segments. "This simplified tax structure also signals greater transparency and policy stability, which are critical for improving investor and buyer confidence," said Malhotra.BPTP CEO Manik Malik said by easing the tax burden on key inputs such as cement and steel, this move will help developers manage construction costs more effectively. For homebuyers, the reform offers a dual advantage — more competitive price points as well as added value — since developers can reinvest savings into further enhanced design, sustainable features and modern amenities.COO of Roots Developers Sumit Ranjan said, "This move is a major win, since it will allow developers to finally pass on significant savings, making homebuying a more accessible task."CNH India president & managing director Narinder Mittal said the decision to reduce GST on farm equipment and related components will accelerate mechanisation by making tractors, harvesters, balers, and implements more affordable, while lowering overall operating costs for farmers. "This empowers industry players to address labour shortages, enhance farmers' productivity and promote sustainable practices," said Mittal.