Retailers’ body urges rationalised GST to boost consumption and ease compliance
The Retailers Association of India (RAI) has welcomed the government’s proposed Goods and Services Tax (GST) reforms, calling them a step towards making the tax system simpler, fairer, and more growth-oriented.
Kumar Rajagopalan, CEO of RAI, highlighted that reducing GST on both everyday essentials and aspirational goods would make products more affordable, spur consumption, and support India’s economic growth. He recommended that a single product should attract the same GST rate across all price points, irrespective of its value per piece.
Rajagopalan added that moving to a two-slab structure would simplify the tax regime, improve compliance, and enhance the ease of doing business. While welcoming special rates for sin goods as a measure to balance affordability with revenue needs, he cautioned against the risk of inverted duty structures in some product categories.
“A balanced and rational GST framework is essential to avoid supply chain inefficiencies and working capital blockages for businesses,” Rajagopalan said, urging the government to ensure reforms translate into tangible benefits for both retailers and consumers.
