‘Big Diwali Gift’ | Anand Mahindra to Harsh Goenka, how India Inc. reacted to GST reforms

India has simplified the GST structure to two slabs and cut rates on hundreds of items, a move that's set to benefit businesses and the common man alike.

India has announced sweeping GST rate cuts on hundreds of consumer items—from soaps to small cars—in the biggest indirect tax overhaul since 2017.

MD and CEO of Edelweiss Asset Management Radhika Gupta, chairman of Mahindra Group Anand Mahindra and industrialist Harsh Goenka.

The number of GST slabs has been reduced to two from four earlier, with essential items in the 5% slab and non-essential items in the 18% slab. A new 40% GST rate has been introduced for so-called sin goods and luxury items. The compensation cess mechanism is being done away with.

Here is how the industry has reacted so far to GST reforms:

Radhika Gupta, MD & CEO, Edelweiss AMC

“Extremely progressive step at a very critical time that should help boost both demand and sentiment! When the world pushes us into a corner, we push ourselves to fight back harder.”

Anand Mahindra, Chairman, Mahindra Group

“We have now joined the battle… More and faster reforms are the surest way to unleash consumption and investment. Those, in turn, will expand the economy and amplify India’s voice in the world.

“The 56th GST Council meeting is a watershed moment for India’s automobile retail industry. FADA welcomes the bold and progressive reforms that simplify the tax structure, lower rates for mass mobility, and bring consensus across all states. This is a decisive step that will boost affordability, spur demand, and make India’s mobility ecosystem stronger and more inclusive.”

Arnab Banerjee, MD & CEO, Ceat Ltd.

“The reduction of GST on new pneumatic tyres from 28% to 18%, and further relief for tractor tyres and tubes to 5%, is a progressive step that will benefit the industry. This reform will make tyres more affordable for customers across commercial, agricultural, and passenger vehicle segments, while also supporting rural mobility through lower input costs for farmers.”

Unsoo Kim, MD, Hyundai Motor India

"The GST overhaul will directly benefit the automotive sector. The announced reforms align seamlessly with the government’s commitment to Viksit Bharat and the Make in India initiative, encouraging domestic manufacturing and boosting demand across both urban and rural markets.

“Notably, 60% of Hyundai India's ICE portfolio will now fall under the 18% slab rate, with the remainder at 40%.”

Anish Shah, Group CEO & MD, Mahindra Group

"The next-generation GST reforms…mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

“At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence.”

Saurabh Agarwal, Partner & Tax Leader, EY India

“The GST rationalisation for vehicles and auto components is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry.”

Samir Shah, CFO, HDFC Ergo General Insurance

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of ‘Insurance for All by 2047’, providing a tangible step forward in that direction.

“While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days.”

Nilesh Shah, MD, Kotak Mahindra AMC

“The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs.”

Shailesh Chandra, SIAM President & Tata Motors MD

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector.

Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

Sanjiv Asthana, CEO, Patanjali Foods

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

“Our categories such as ghee, soaps, biscuits, noodles, honey, chyawanprash will benefit from this reduction.”

Radhika Rao, Senior Economist, DBS Bank

"Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy."

Shripal Shah, MD & CEO, Kotak Securities

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of US tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

“This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers.”

Devarsh Vakil, Head (Prime Research), HDFC Securities

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

“Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth.”

Sudarshan Venu, Chairman, TVS Motor

“The GST tax cuts are a major move by the government to further turbocharge growth. For our industry especially, it’s a welcome move as it will help two wheelers become more accessible and also help those looking to upgrade.”

Neeraj Akhoury, MD, Shree Cement

"Bringing GST down to 18% corrects a long-standing anomaly, aligns cement with other core building materials, and enhances global competitiveness.

“As a key input for infrastructure and housing, fairer taxation is expected to boost consumption and support projects from affordable housing to large-scale infrastructure.”

Nitin Rao, CEO, InCred Wealth

"History has shown that such measures add significantly to GDP growth and a repeat is expected.

“Positive this will play out, though a small concern remains wherein recent measures like the rate cuts budgetary measures taken on reduced taxes have not created necessary consumption boosters. We will have to wait and see if this welcome third step reverses the consumption trend or there is a deeper problem around availability of money with consumers.”

Rahul Singh, CIO-Equities, Tata Asset Management

"The GST rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook.

“This coupled with certain process reforms is also positive for SMEs (small and medium enterprises). While the direct gsainers include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs.”

Rajneesh Kumar, Flipkart Group

"By lowering input costs for farmers, simplifying compliance for MSMEs, and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India's growth engine.

“Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat.”

Sheetal Arora, CEO, Mankind Pharma

"The GST revisions go beyond tax rationalisation, they represent a structural shift in how India is enabling healthcare access.

“By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signaled that affordability and innovation can go hand in hand.”

Amit Paithankar, CEO, Waaree Energies

“The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector.”

Girish Wagh, Executive Director, Tata Motors

"The GST Council’s decision to reduce the GST rate on commercial vehicles— trucks, buses, and ambulances—to 18% marks a pivotal reform in India’s mobility landscape.

“This landmark reform will significantly accelerate fleet modernisation, driving the adoption of safer, smarter, and greener vehicles across India. By resolving the long-standing issue of inverted duty for transporters, it unlocks greater affordability and liquidity, strengthening the entire commercial mobility ecosystem.”