Arjun Ram Meghwal, Minister of State (Independent Charge) for the Ministry of Law and Justice in India, addressed the FICCI-CASCADE’s ‘MASCRADE 2025’ event, stating that GST 2.0 is designed to facilitate life for both households and businesses. He highlighted the reduction in GST returns from 37 in 2017 to just 3 today, showcasing the government’s responsiveness to industry feedback. He emphasized the need to clearly define illicit trade and collaborate to eradicate it, assuring that recommendations from MASCRADE 2025 will be presented to the Government for action. Anil Rajput, Chairman of FICCI CASCADE, praised the Prime Minister for the bold GST 2.0 reforms, which enhance taxation efficiency and simplify rate structures.
He expressed that GST 2.0 embodies the concept of ‘One Nation, One Tax’ and urged policymakers to maintain a balanced tax structure to deter illicit trade, which often thrives on high tax rates. He introduced a new framework called ‘SHIELD’ aimed at combating illicit trade, focusing on strategic monitoring, technology utilization, industry collaboration, enforcement, legal reforms, and demand reduction. Recognizing the efforts of enforcement agencies, he noted a significant increase in the seizure of illicit goods over the past year. During a video address, Gael Grooby from the World Customs Organization commended FICCI’s leadership in fighting illicit trade and discussed how emerging technologies like AI and real-time data sharing are being used to manage the challenges posed by e-commerce.
P K Malhotra, a former government secretary and member of FICCI CASCADE, highlighted the severe economic and social implications of illicit trade, urging coordinated action and international collaboration to address these issues effectively. At the event, FICCI CASCADE and the Thought Arbitrage Research Institute released a report detailing the impact of GST reforms. The report indicates that GST 2.0 significantly improves ease of living and doing business, with an increase in items taxed at reduced rates. This reform is expected to enhance disposable income for consumers and bolster local businesses. The report also warns of the growing illicit markets that emerged under GST 1.0, which disproportionately affect lower-income groups and government revenue.
By adjusting tax slabs, GST 2.0 aims to reduce price discrepancies that encourage smuggling and counterfeiting, thereby enhancing consumer safety and supporting the formal economy. However, it cautions against the introduction of new high tax slabs that could perpetuate illicit trade. The conference featured discussions on the necessity of collective efforts to combat smuggling and counterfeiting, recognizing various stakeholders including enforcement officers and journalists for their contributions in this fight.