Kanara Chamber of Commerce and Industry Welcomes GST 2.0, Urges Further Service Sector Rationalisation
Mangaluru: The Kanara Chamber of Commerce and Industry (KCCI), representing a consortium of industrialists, traders, and professionals in Coastal Karnataka, has issued a statement welcoming the Government of India and the GST Council’s recent GST 2.0 reforms, enacted in September 2025. The KCCI specifically lauded the rate rationalisation measures as a “bold step” towards a more streamlined and efficient taxation system.
In its formal statement, the KCCI conveyed its congratulations to the government for its decisive actions aimed at simplification, enhanced transparency, and facilitating ease of doing business within the nation. While expressing support for the implemented reforms, the Chamber also presented a set of recommendations designed to further optimize the GST framework.
Specifically, the KCCI has urged the government to consider a rationalisation of the service sector through the implementation of a three-tier GST structure. This proposed structure would entail a Nil GST rate for essential services such as medical, legal, educational, and governmental services. A 12% GST rate would be applied to essential and business input services, while a higher rate of 18% would be levied on consumption-based services.
Furthermore, the KCCI has recommended the adoption of annual return filing in lieu of the currently mandated monthly returns. Additionally, the Chamber proposes enabling app-based monthly tax payments for composition dealers possessing a turnover of up to ₹10 crore. These measures, the KCCI believes, would significantly ease compliance burdens for small and medium enterprises (SMEs), fostering a more conducive environment for their growth and development.
Addressing business owners, the KCCI called upon them to proactively rework their input costs and revise Maximum Retail Prices (MRPs) in light of the rationalised GST rates. The Chamber emphasised the importance of ensuring that the benefits of reduced GST rates are effectively passed on to consumers, in strict adherence to anti-profiteering provisions.
Members of the KCCI were also reminded of the necessity to comply with Legal Metrology Rules by meticulously updating MRP labels, conducting thorough physical inventory checks, and reversing input credits for goods and services that now fall under the Nil GST or 5% tax bracket without Input Tax Credit (ITC). By diligently adopting these measures, businesses can cultivate consumer trust, bolster compliance, and contribute to a seamless and efficient rollout of GST 2.0.
The Kanara Chamber of Commerce and Industry reaffirmed its unwavering commitment to collaborating closely with the Government to ensure the resounding success of GST 2.0. The KCCI also pledged its support to businesses in facilitating a seamless and efficient adaptation to the new regulatory regime. The Chamber views GST 2.0 as a significant step forward in promoting growth and transparency within the Indian economy and remains dedicated to assisting its members in navigating the evolving landscape.