BENGALURU: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) on Thursday welcomed the GST reforms and termed it as a game changer for the industry and trade sector and for the consumers. GST Council member BT Manohar said the overall revision will benefit the common man. The long-standing demand for reclassifying the Harmonised System for Nomenclature (HSN) goods has been done.
The Union Government’s decision to do away with 12% slab and revising the tax network will help in the overall economic growth. The new GST structure has been rationalised into two core tax slabs of 5% and 18%, replacing the earlier complexity of four slabs.
A special 40% rate will apply exclusively to sin and luxury goods. FKCCI experts said the reduction to 5% GST on essential daily-use items will translate to increased disposable income and heightened domestic demand, especially during festive season. Also, 18% GST on small cars, air-conditioners, TVs and household appliances makes them affordable and expands market reach. FKCCI President MG Balakrishna said reforms in GST is already reflecting in investor sentiment.
They are showing a positive response and economists foresee a potential boost of 100–120 basis points in GDP growth over the next 4–6 quarters, he said.
Jyoti Global Plast Ltd MD Hiren Shah said, “The reforms for drones and simulators, mark a strategic inflection point for advanced industries. The sharp cut to 5% GST on unmanned aircraft and IGST exemption for simulators directly reduces costs for defence and aviation ecosystems, encouraging wider adoption and domestic manufacturing.” .
GST on popcorn
People took to social media to express their opinions on GST revision, particularly the reduction in popcorn. According to the reforms, salted popcorn will attract 5% GST while caramel popcorn 18%. Netizens expressed their relief and also demanded the multiplex associations do not increase the basic rates. Explaining the rates, a GST council member, not wanting to be named, said, “Since salted popcorn falls under namkeen and salt confectionery category the tax slab is 5%, but caramel doesn’t. Popcorn is not a food item, it is something your pallet cherishes and so the caramel popcorn draws 18% GST.”