AP Chambers welcomes next-generation GST reforms

Vijayawada: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) praised the Union government’s recent Goods and Services Tax (GST) reforms, calling them a crucial step that will benefit both the public and businesses.

For the last three to four years, AP Chambers has been advocating for the rationalization of GST into a two-slab structure. The organization believes this reform will significantly help various sectors in Andhra Pradesh, especially micro, small, and medium enterprises (MSMEs), which have been struggling with high costs and a slowdown in demand.

According to a press statement, AP Chambers president Potluri Bhaskara Rao and general secretary B Rajasekhar said, ”AP Chambers congratulates Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman and the GST Council for their transformative leadership. By reducing taxes on essentials like food, education, healthcare, and agriculture, this move will ease the burden on households, improve affordability, and raise living standards.”

The chambers expects the reduced tax burden and improved competitiveness to benefit most sectors in the state, from agriculture to industry. AP Chambers is urging industries to pass the benefits of lower GST rates to consumers and has called on the government to monitor the implementation of the reforms.

AP Chambers believes the new two-slab structure will increase GST adoption, particularly in the unorganised sector, and help curb tax evasion. The simplified procedures are also expected to lower business costs, reduce litigation, and clarify the tax system.

In addition, AP Chambers recommended reducing the GST on fruit pulp-based carbonated drinks to 5 percent to promote horticulture and support farmers.

”These reforms are citizen-friendly, farmer-friendly, and MSME-friendly,” Bhaskara Rao added. ”This decision will transform the tax system, boost competitiveness, and strengthen inclusive growth. It is equally important, however, that the benefits of these reforms are passed on to consumers.”