The GST reforms, which came into effect on September 22, 2025, are being considered a major change for India’s 64 million micro, small, and medium enterprises. Experts say that this reform has not only simplified the tax structure but also opened the way for increasing the competitiveness of small industries. The inclusion of approximately 400 products in the new tax slabs will reduce production costs and enable businesses to achieve better margins.
Expert Opinion
Trilochan Tripathi, a finance professor at the XLRI School of Management in Jamshedpur, believes that this is the most significant tax reform since the implementation of GST in 2017. He says that the reduction in tax rates on many raw materials used by small enterprises and service providers will directly reduce costs. This change will provide long-term stability to entrepreneurs and will enable the MSME sector to take strong steps towards self-reliance.
Business Reaction
Manav Kedia, President of the Singhbhum Chamber of Commerce and Industry, called these reforms positive and historic. He stated that this move is not merely a structural change, but should be viewed as a strategy for the development of the MSME sector. According to him, these changes, effective September 22nd, include approximately 400 products in the 5 and 18 percent tax slabs, which will directly benefit small manufacturers.
Prospects for the MSME Sector
The GST reforms have created new opportunities for the MSME sector. Small businesses will now have the opportunity to produce products at lower costs, enabling them to compete more strongly in domestic and global markets. Experts believe that these reforms will also increase employment opportunities and boost exports.
Disclaimer: This article is written for general information and analysis purposes. The views expressed herein are based on expert opinions and public sources. Please consider your personal circumstances and the advice of a qualified advisor before making any investment, business, or financial decisions.
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