Small-scale businesses and start-ups will receive significant benefits: COAS General Upendra Dwivedi endorses GST changes

The Indian defense sector is set for a significant boost with the recent GST reforms, as per General Upendra Dwivedi, a senior military leader. The reforms aim to modernize the Armed Forces by restructuring them through the establishment of Integrated Theatre Commands (ITCs) and Integrated Battle Groups (IBGs).

The GST rate for armoured units has been brought down to 5%, a move that General Dwivedi believes will enable the Army to purchase more equipment, thereby enhancing operational efficiency. This reduction in GST is part of the government's efforts to merge the 12% and 28% GST rates into two slabs of 5% and 18%.

The ITCs and IBGs reforms are intended to optimize operational preparedness of the Armed Forces by unifying the Army, Navy, and Air Force capabilities based on geography and function. This unification, known as theaterisation, is progressing satisfactorily, according to General Dwivedi, and is essential for effective conventional warfare, requiring unity of command and decentralised execution.

The importance of familiarisation and synergy among forces cannot be overstated, General Dwivedi emphasised, highlighting the need for these qualities to enhance operational effectiveness. He stated that theaterisation is the future path for coordinated multi-agency military operations.

The GST reforms are also expected to provide a major advantage to Micro, Small and Medium Enterprises (MSMEs) and start-ups in the defense sector, as mentioned by General Dwivedi. Zero GST will be applied to simulators, military Unmanned Aerial Vehicles (UAVs), and projects under the Innovations for Defence Excellence (iDEX) initiative, further boosting the sector.

The iDEX project and others in research and development will have complete GST refunded, a move that is expected to encourage innovation and technological advancement in the defense sector. The GST for military UAVs is already zero, a testament to the government's commitment to supporting the defense sector.

General Dwivedi expressed his gratitude to the government for the recent GST reforms, stating that they will give a major fillip to the defense sector. He emphasised that these reforms are crucial for the Armed Forces to meet the three requirements identified in conventional warfare: force visualization, force protection, and force application.

In conclusion, the GST reforms are a significant step towards modernizing the Armed Forces and the defense sector, providing a much-needed boost to operational efficiency and technological advancement. The unification of the Army, Navy, and Air Force capabilities through theaterisation is a key component of these reforms, and its progress is a positive sign for the future of the Armed Forces.