GST 2.0 to cost ₹3,700 cr revenue loss, no impact on deficit: SBI Research

The State Bank of India (SBI) research report has said that the latest reforms in the Goods and Services Tax (GST) structure will lead to only a minimal revenue loss of Rs 3,700 crore, with no adverse impact on the fiscal deficit.

- STATESMAN NEWS SERVICE

As per the report, the government has estimated the net fiscal impact of GST rates rationalisation at Rs 48,000 crore on an annualised basis. However, stronger consumption and growth prospects are expected to offset this, keeping the actual loss negligible. At the 56th meeting of the GST Council held recently, the existing four-tier structure was replaced with a simplified two-tier system, comprising a standard rate of 18 per cent and a lower slab of 5 per cent, along with a demerit rate of 40 per cent for select goods and services.