-Khwaish Hingad (cbedit@imaws.org)
The Indian government’s recent GST rationalization, consolidating multiple tax slabs into a clearer two-tier structure of 5% and 18%, marks a transformative moment for various industries. This reform, effective from September 22, 2025, is being widely celebrated by business leaders for its potential to stimulate consumer demand, enhance operational transparency, and provide a much-needed boost to key sectors like hospitality, F&B, consumer durables, and dairy. By simplifying the tax regime, the government is not only reducing compliance burdens but also creating a more predictable and investor-friendly environment. The new framework is expected to make products and services more affordable for the common consumer, thereby fueling consumption and contributing to the nation’s economic growth.
Let’s deep dive into the industry leaders’ reactions:
Mr. Simranjeet Singh, Director, CYK Hospitalities, weighs in on the impact on the F&B industry.
“The GST rationalisation represents an uplifting change for any startup or emerging brand in the F&B industry, as it promises an easier working life. Up until now, the multiplicity of tax slabs has posed serious troubles for the young entrepreneurs to construct a transparent price structure, to remain in compliance, and to contend with such buying customers who are cost-conscious. Two slabs with 5% for essentials and 18% for anything else enhance the clarity of choice when operating a new venture and deciding on product mix and expansion strategy. Greater transparency reduces compliance costs and gives confidence to investors in scalable F&B models. The product on a lower slab is beneficial for startups, as cheaper products create demand for QSR concepts, cloud kitchens, and packaged foods, whereas premium concepts purchase on the higher slab. Thus, by way of creativity, the reform empowers the ecosystem through ingenuity, credibility, and promising avenues of growth for entrenched players as well as burgeoning entrepreneurs.”
Mr. Nalin Kumar, COO of KAFF Appliances, about the benefits for the kitchen appliances sector.
“The recent GST reforms are a progressive measure for the kitchen appliances industry, promoting a better pricing scenario for consumers. At KAFF, our aim is to transfer maximum benefits directly to our customers, bringing innovative kitchen solutions within reach at affordable prices. Since the reforms coincide with the festive season, we predict a robust increase in demand, as consumers tend to revamp their kitchens with higher zeal, adding further momentum to the overall market in the subsequent months.”
Dr. Vikram Kamat, Chairman and Managing Director, VITSKAMATS GROUP, shares his perspective on how the reform will invigorate the hospitality industry.
“Lowering GST to 5% for the Rs 7500 room segment will bring a significant boost to India’s hospitality industry. At VITS Hotels, nearly 70% of our rooms fall below this threshold, and such a move could stronger occupancies. More so it will help give lot of clarity and reduce the number of tax disputes in the hospitality industry caused due to lack of clarity with his any room sold above the threshold or seasonal rates or average selling price of rooms in general. It will also help domestic travelers access premium hospitality at competitive prices while improving India’s positioning against global destinations. This reform has the potential to create a ripple effect across the ecosystem by driving demand, encouraging expansion, and strengthening employment opportunities in the sector.”
Amit Raman, General Manager, Radisson Blu Hinjewadi, Pune, details the positive ripple effect on the dairy industry.
“The dairy industry has always been integral to India’s economy and nutrition, supporting millions of farmers while catering to evolving consumer needs. Despite its strong foundation, the sector continues to face hurdles such as high operational costs, fragmented supply chains, and taxation challenges. A key area of discussion is the Goods and Services Tax (GST) structure on dairy products. While liquid milk is exempt, value-added items like paneer, cheese, ghee, and flavored milk fall under GST slabs ranging from 5% to 18%. This adds to consumer costs, limits affordability, and places constraints on businesses looking to expand their reach. Rationalizing GST rates could provide relief across the value chain boosting consumption, enabling businesses to scale, and supporting farmers with fairer returns. For businesses, reduced GST would mean healthier cash flows and improved working capital, creating room for investment in infrastructure, cold chain systems, and innovation. With growing demand for nutritious, protein-rich, and value-added dairy products, such investments are essential to remain competitive in a fast-changing market.
Equally important, a restructured tax framework could help formalize a larger share of India’s dairy sector. Nearly 60% of milk production still moves through informal channels, often lacking consistency in pricing and quality. Lowering the cost burden on organized products would accelerate industry standardization, benefiting farmers, businesses, and consumers alike. For households, especially middle-income families, lower GST rates would increase access to affordable, high-quality dairy products, furthering national goals of nutrition security and rural economic empowerment. At Radisson Blu Pune Hinjawadi, where food and beverage excellence is at the heart of guest experience, we recognize the vital role of the dairy sector in hospitality and beyond. Progressive policy changes, particularly around GST, can unlock new opportunities not just for the industry but for every stakeholder from farmers and businesses to end consumers.”
