Madurai trade bodies hail GST rate cuts, call it boost for growth

Madurai: Trade and industry bodies across Madurai on Thursday welcomed the tax reforms announced at the 56th GST Council meeting. They called them a decisive step toward easing the burden on middle-class families, encouraging savings, and improving competitiveness across sectors.The Tamilnadu Chamber of Commerce and Industry said the reduction of GST slabs from four (5%, 12%, 18%, 28%) to two (5% and 18%) was a long-standing demand of traders. "By correcting inverted duty structures, streamlining rates, and exempting more than 50 essential life-saving medicines, the reforms will strengthen cash flow, ease compliance, and bring down inflation," said chamber president N Jegatheesan. He noted that essentials such as dairy products, dry fruits, toiletries, and bicycles were moved to the 5% slab, while GST on cement and motor vehicles was reduced from 28% to 18%, benefiting the middle class.The Agri & All Trade Chamber lauded the sharp cuts for the farm sector, pointing out that GST on food processing machinery, fertilisers, and cold storage services was slashed to 5% or zero. "This will directly cut production costs, improve farm incomes, and boost investment in agriculture infrastructure," a statement said.The Indian Bakery Federation and Tamil Nadu Bakery Federation also thanked the Centre for reducing GST on bread to 0% and on other bakery products to 5%. Federation leaders Anbu Rajan and Pandurangan said the simplified structure would reduce confusion, encourage voluntary tax compliance, and expand the industry's growth potential. Industry leaders underlined that these were not "freebies" but structural reforms. "Lower taxes will boost purchasing power, trade competitiveness, and investment. This is a path to development," a statement said.