Press Release

The Doha Chapter of the Institute of Chartered Accountants of India (DCICAI) in association with Embassy of India, Doha, organised a seminar on GST 2.0 reforms on September 16, 2025. The event drew around 120 participants from accounting, finance and business communities in Qatar, and focused on the implications of India’s recently announced next-generation Goods & Services Tax reforms.

CA Kamlesh Tibrewal, senior tax professional and past Chairperson, DCICAI, delivered the keynote address, providing an in-depth analysis of the GST 2.0 framework and its impact on compliance and business strategies. He highlighted that these reforms are not only a milestone in tax simplification, but also promote ease of doing business, particularly for small traders and industries. He spoke about the far-reaching benefits of GST 2.0 in reducing compliance burdens, improving transparency, and providing relief to both businesses and consumers. He noted that the administrative and procedural reforms—such as faster refunds, streamlined filings, and digital-first compliance—will significantly enhance efficiency. Recalling that GST was first implemented in India on 1st July 2017, he observed that the present set of reforms represents the most comprehensive restructuring of the system since its inception, marking a new phase of India’s indirect tax journey.

Mr. Sandeep Kumar, Deputy Chief of Mission, Embassy of India, in his address, underscored that GST 2.0 next generation reforms is not only a far-reaching financial reform but will also have a positive social impact on the lives of common man by making essential goods and services more affordable. He emphasised that the reform aligns with India’s broader vision of inclusive growth and socio-economic development. He also mentioned that these reforms were announced by Prime Minister Shri Narendra Modi in his Independence Day address, after which the 56th GST Council meeting held under the Chairmanship of Union Finance Minister Ms. Nirmala Seetharaman in New Delhi on 3rd September 2025, approved a comprehensive overhaul of the GST framework. He also noted these reforms represents a strategic, citizen-centric, and business-friendly transformation of India’s indirect tax system that will enhance ease of living and long term economic growth and development of the nation and its people. He also highlighted the considerable rise in the GST tax payers base owing to simplification and digitaliastion of compliance procedures and tax slabs, and the doubling of GST tax revenues in the last four years.

The seminar highlighted the significant changes under the GST 2.0 such as: the current four-tiered system being rationalised into a “Simple Tax” framework, consisting of a standard rate of 18%, a merit rate of 5%, and a 40% demerit rate for select goods and services. This shift aims to reduce complexity and bring greater transparency to taxation.

A strong focus has been placed on providing relief to the common man. GST has been reduced from 18% or 12% to 5% on household essentials such as hair oil, soaps, shampoos, toothpaste, bicycles, kitchenware, and other everyday items. Certain food staples including UHT milk, paneer, and all Indian breads (roti, paratha, parotta, etc.) will now attract zero GST. Packaged food items like namkeens, noodles, sauces, chocolates, coffee, butter, and ghee will also see lower rates of 5%.

The reforms bring a major boost to healthcare and insurance accessibility. All individual life and health insurance policies, including reinsurance, are now exempt from GST. In addition, 33 life-saving medicines have been moved to the NIL rate category, while GST on most other drugs, diagnostic kits, and critical medical devices has been reduced significantly.

Agriculture and labour-intensive sectors are also key beneficiaries. GST on agricultural machinery such as tractors, threshers, and composting machines has been cut from 12% to 5%. Handicrafts, marble and granite blocks, and leather intermediates will now be taxed at concessional rates. These steps aim to support farmers, artisans, and small-scale industries.

The reforms also address long-standing issues in industry and infrastructure. GST on cement has been reduced from 28% to 18%, while inverted duty structures in textiles and fertilizers have been corrected, with rates on man-made fibres, yarn, and key fertilizers now reduced to 5%. Renewable energy devices have also been made more affordable with a GST cut from 12% to 5%. In the automobile sector, GST on small cars and motorcycles (≤350cc) has been reduced from 28% to 18%, while all auto parts have been standardised at 18%. Rates for buses, trucks, and ambulances have also been rationalised, ensuring affordability and consistency across the transport sector.

The services sector will also benefit from reductions. Hotel accommodation priced at up to INR 7,500 per day will attract only 5% GST, down from 12%. Similarly, services such as gyms, salons, barber shops, and yoga centres have seen their rates reduced from 18% to 5%, making wellness and personal care more affordable.

The event once again reaffirmed ICAI Doha Chapter’s commitment to bringing timely and relevant knowledge-sharing platforms to its members, fostering stronger professional engagement within the community.

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