He added that the last such sweeping reforms had taken place in 1991, when India had liberalized its economy. “These (the GST rate cuts) are just rate rationalisation.” The chairman was speaking on the sidelines of a press meet for Interio by Godrej.
Godrej also dismissed the view that the income tax rebates—offered to those earning up to ₹12 lakh in this year’s Budget—would boost consumption. “Do we know where this money (savings from lower income tax) is actually going?” he asked. “It must be getting used in debt (repayment) at that level.”
Read more: Godrej Interio aims to double sales by 2028 with fresh brand identity, expansion
Recent GST changes
Last week, the government nixed two slabs of GST, moving goods to 5% and 18% tax slabs and some to a special ‘sin’ tax of 40%. Packaged food and personal care staples are expected to get cheaper as their GST rates were cut from 12% or 18% to 5%. Top industry leaders, including Mukesh D. Ambani, chairman and manging director of Reliance Industries Ltd, hailed the move as a “big booster to consumption-driven growth”.
Godrej Enterprises’ biggest consumer business is appliances, including refrigerators and air-conditioners, which saw their tax rate cut to 18% from 28%. The company also sells furniture under the Interio by Godrej brand and security solutions.
