Indias GST 2.0: Analysing the ₹48,000 Crore Revenue Impact
GST 2.0, with its projected ₹48,000 crore revenue impact, is a topic of considerable debate in India. The reform, which reduces the number of GST slabs from four to two, aims to stimulate long-term economic growth.
However, questions remain regarding whether this will translate into immediate benefits for consumers. Professor Aman Agarwal, a finance expert, notes that while some items like televisions and washing machines have become cheaper, the impact on purchasing behaviour remains uncertain.
He highlights two key components of GST: the tax paid by industries and the direct benefit to consumers. Agarwal expresses doubt that industries will fully pass on the tax savings to consumers, at least in the short term. He suggests that the significant cost reduction for consumers will be noticeable from 27th September 2025 onwards. The long-term impact on India's economy remains to be seen.