GST 2.0: Taking a big step towards speeding up the country’s economy, the central government has made a big change in GST. Earlier, four slabs were kept in GST 1.0, but now it has been reduced to only two slabs. This new structure will be applicable from 22 September 2025. However, the state governments have expressed concern about their revenue loss about this change.
According to the government estimate, there may be a loss of about Rs 48,000 crore annually based on the consumption pattern of 2023-24. Revenue Secretary Arvind Srivastava said in a statement to news agency IANS that the central government may have to bear such a burden.
What do brokerage firms say on loss?
Brokerage firms believe that the actual loss will not be so large, as GST improvement can increase demand. According to Jafaries estimates, in FY 2026, this deficit can be reduced between 22,000 and 24,000 crore rupees. The firm argues that tax cuts may reduce inflation and in such a situation, the Reserve Bank can cut interest rates from 25 to 50 basis points.
Experts of Bransstein say that if the government does not cut capital expenditure, then this deficit can increase to about 20 basis points of the Union Budget. But if capital expenses are cut by 5 percent, then this effect will be reduced to only 5 basis points.
Impact on market
According to UTI AMC, the impact of this change on the bond market and stock market will be limited. At the same time, the ICRA welcomed the government’s move and said that this improvement will prove to be positive for industries struggling with the pressure of American high tariffs and will strengthen the market notion.
Also read: What do the big business personalities of the country think on GST 2.0? Opinion from Anand Mahindra to Harsh Goenka
