September 5, 2025, Kolkata: The Indian Chamber of Commerce (ICC) has lauded the government’s decision to introduce a two-tier Goods and Services Tax (GST) regime from September 22, describing it as a significant reform aimed at easing the indirect tax burden and strengthening the economy.

According to ICC President Abhyuday Jindal, the revised structure could lift GDP growth by around 1% and help cushion the impact of higher U.S. tariffs on Indian exports. “This fiscal stimulus is expected to boost domestic demand and reflects a shift in economic priorities towards long-term growth and capacity building,” Jindal said.

ICC also noted that the move addresses both consumer welfare and revenue efficiency, marking what it described as one of the most comprehensive attempts at rationalising indirect taxes since independence.

Dr. Rajeev Singh, Director General, ICC, pointed out that corrections in the inverted duty structure in certain sectors were a major step forward. He highlighted measures such as simplified refunds, exemption of individual life and health insurance from GST, reduced compliance burdens, lower rates on essential goods and critical inputs, and efforts to reduce litigation.

“These changes are expected to provide relief across multiple segments, including farmers, small businesses, traders and industry,” Singh said, adding that the reform could deliver long-term benefits to a wide range of stakeholders.

The new two-tier GST structure comes at a time when policymakers are seeking to balance growth, consumer relief, and fiscal stability.