By Mr. Sanjay Jain, Director, Elanpro.
New Delhi, 05th September, 2025: Expressing GST 2.0 will boost consumption in the economy, Mr. SANJAY JAIN, DIRECTOR, ELANPRO, said, “The next-gen rationalisation of GST is a welcome step that will boost consumption and create more investment headroom across sectors.
In hospitality, the impact is especially strong—room tariffs below Rs. 1,000 are now tax-free, mid-range hotels between Rs. 1,001– Rs. 7,500 are down to just 5%, and even premium hotels above Rs. 7,500 have dropped from 28% to 18%. This is likely to drive higher occupancy, and we expect it will soon translate into greater demand for kitchen upgrades and modern refrigeration.
Restaurants and catering players are also set to benefit, with GST on standalone non-AC outlets with turnover < Rs. 50 lakh, air-conditioned restaurants, and even outdoor catering services cut to just 5%. With lower costs on their shoulders, F&B operators will have more room to invest in food safety, storage, and quality.
For FMCG and dairy companies, relief on essentials like UHT milk, paneer, and cheese opens the door to stronger cold storage and refrigerated logistics. And with renewable energy devices now taxed at 5%, solar-powered cold storage has suddenly become much more viable.
The impact may be indirect and medium-term, but taken together, these reforms are a strong catalyst for India’s commercial refrigeration industry, paving the way for faster and broader cold chain adoption.”