Tariff hit on GDP growth at 0.2-0.3% in FY26: CEA V Anantha Nageswaran

'GST REFORMS TO NEGATE IMPACT'

- OUR CORRESPONDENT

NEW DELHI: The goods and services tax (GST) reforms will help offset some of the adverse impacts of steep tariffs of 50 per cent imposed by the US on Indian shipment and the net impact of this on the GDP growth would be 0.2-0.3 per cent in the current financial year, Chief Economic Adviser V Anantha Nageswaran said on Wednesday.

On the positive side, he said, the GST reforms will play a very good offsetting role by substituting domestic demand for whatever export demand that may not materialize from the United States.

The GST Council last week decided to overhaul the tax regime by tweaking the four-slab GST structure of 5 per cent, 12 per cent, 18 per cent, and 28 per cent to a two-slab structure of 5 per cent and 18 per cent. The council also introduced a new GST rate of 40 per cent, to be imposed on sin and luxury goods.