'GST 2.0 a remarkable step; Govt will work on FICCI CASCADE’s recommendations to curb illicit trade'

Goods and Services Tax (GST) 2.0 is not just a reform of India’s indirect tax system but a measure to simplify life for households and businesses, Union Minister of State (Independent Charge) for Law and Justice Arjun Ram Meghwal said on Thursday. Speaking at FICCI CASCADE’s annual conference MASCRADE 2025, Meghwal said the new regime has brought down compliance significantly. “From filing 37 GST returns in a year in 2017 to only three today, this reform shows how governance can truly respond to industry’s voice,” he noted. He added that the government would examine and act upon the recommendations emerging from the conference to check illicit trade. The minister stressed that illicit trade needed a clear definition and collective effort for elimination. He also pointed out that GST 2.0, with its simplified rates, reduces price disparities that often fuel smuggling and counterfeiting.

FICCI CASCADE chairman Anil Rajput described GST 2.0 as “another step toward Viksit Bharat” and said it builds on the 2017 reform with rational structures and greater efficiency. “GST 2.0 truly embodies the vision of ‘One Nation, One Tax.’ High tax rates create price gaps that fuel smuggling and counterfeiting. GST 2.0 addresses these concerns,” Rajput said.

He also announced a new framework, SHIELD, for tackling illicit trade. The model proposes strategic monitoring, harnessing technology such as AI and blockchain, collaboration with industry, strict enforcement, legal reforms, and demand reduction through public awareness. Addressing the gathering via video, World Customs Organization (WCO) Director Gael Grooby said that while e-commerce has revolutionized trade, it has also enabled counterfeit goods to spread quickly. She highlighted the WCO’s investments in AI, data-sharing, and detection technologies to manage the rising flow of small packages, and praised India’s role in strengthening the Customs Enforcement Network.

Former Law Secretary P.K. Malhotra cautioned that illicit trade carries severe social and economic costs. He said India’s goal of becoming a $30 trillion economy by 2047 would be undermined unless smuggling, counterfeiting, and tax evasion were tackled with robust enforcement and clear laws. “Illicit trade is no longer a fringe problem. It operates like a global organized network,” Malhotra said, calling for coordinated action among government, industry, and citizens.

On the sidelines of the event, FICCI CASCADE and the Thought Arbitrage Research Institute (TARI) released a report titled Decoding the Journey of GST Reforms: GST and Its Effect on Economy, Business and Household Consumption. The report finds that GST 2.0 has eased household tax burdens, empowered MSMEs, and accelerated formalisation in the economy, bringing India closer to the long-standing goal of a single tax.