कोशिश गोल्ड - मुक्त

How GST Reform Strengthens India's Military Posture

The Business Guardian

|

September 07, 2025

In early September, the 56th GST Council meeting passed almost unnoticed outside the financial pages.

- MAJ GEN R.P.S. BHADAURIA (RETD)

How GST Reform Strengthens India's Military Posture

Another set of tax tweaks, most thought. But for those of us who've spent a lifetime in uniform, 3 September 2025 will mark something quite different. For the first time, a fiscal reform has been written with national security front and center. When these new rates come into force on 22 September, the Army—indeed all three Services—will feel the change not in ledgers but in the field.

Why? Because GST 2.0 isn't just a book-keeping adjustment. It's a combat readiness multiplier.

THE NUMBERS THAT MATTER

India's defence budget for FY 2025-26 stands at Rs 6.81 lakh crore—roughly $77-79 billion. On paper, that's a 9.5 per cent increase. But dig into the allocations and you see the squeeze. Only Rs 1.80 lakh crore (26 per cent) is earmarked for capital expenditure, the part that buys the tanks, aircraft, drones, and missiles we need for tomorrow's wars. Nearly half—Rs 3.11 lakh crore—goes to revenue expenditure, much of it salaries and pensions.

Until now, GST and customs quietly skimmed off as much as 12 per cent of the Army's procurement budget—about Rs 7,000-8,000 crore every year. It was a silent tax on readiness. With GST 2.0, that leakage ends. And when you look across the entire defence establishment—Army, Navy, Air Force, and other MoD procurement—analysts estimate savings of Rs 15,000-25,000 crore annually, or around Rs 60,000 crore over five years. That's 10-18 per cent more purchasing power without a rupee more in allocation. In military planning terms, that's decisive.

CAPITAL BUDGET: MORE FIREPOWER FOR THE ARMY

What does that mean in practice? The list of items now GST-free or slotted into the 5 per cent slab reads like an Army wish-list: UAVs and drones; C-130 and C-295 aircraft; tanks, armoured vehicles, artillery spares; software-defined radios; missiles and rockets; simulators and ejection seats; even underwater platforms.

The Business Guardian से और कहानियाँ

The Business Guardian

'Not for Masks but Disruption': Speaker rebuts Atishi as four AAP MLAs face action

The Delhi Legislative Assembly was the scene of an intense political standoff on Tuesday after Leader of Opposition Atishi claimed that Members of the House had been expelled simply for wearing masks, an allegation that was categorically dismissed by the Speaker's office as “factually incorrect” and misleading in nature.

time to read

2 mins

January 07, 2026

The Business Guardian

The Business Guardian

NHAI urges DoT and TRAI to address mobile connectivity gaps on National Highways

The National Highways Authority of India (NHAI) has sought the intervention of the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) to address critical mobile network connectivity gaps across the National Highway network.

time to read

1 min

January 07, 2026

The Business Guardian

CBI SUMMONS TVK CHIEF IN STAMPEDE CASE

CBI has asked Vijay to appear before it on January 12 for questioning of tragedy in Karur rally in which 41 lives were lost

time to read

2 mins

January 07, 2026

The Business Guardian

AFTER CHARLIE: THE SECURITY STATE

How symbolic attacks justify surveillance and emergency powers— and why UAPA’s bail standards keep Umar Khalid jailed before trial.

time to read

10 mins

January 07, 2026

The Business Guardian

The Business Guardian

Major blow to CPI (Maoist) as PLGA battalion commander Deva surrenders

Former CPI (Maoist) commander Badse Sukka alias Deva, who carried a reward of Rs 75 lakh, has surrendered to the Telangana Police, delivering a major setback to the banned Maoist outfit.

time to read

1 mins

January 07, 2026

The Business Guardian

K'taka HC Dharwad bench evacuated after bomb threat, probe initiated

The Dharwad bench of the Karnataka High Court on Tuesday received a bomb threat email, prompting authorities to evacuate the premises and initiate a thorough search.

time to read

1 mins

January 07, 2026

The Business Guardian

The Business Guardian

Algoquant Fintech Limited Commences Trading on National Stock Exchange (NSE

Algoquant Fintech Limited (formerly known as Hindustan Everest Tools Limited), a technology-driven fintech company specializing in low-risk arbitrage and high-frequency trading in the Indian capital markets, today commenced trading of its equity shares on the National Stock Exchange of India Limited (NSE).

time to read

1 min

January 07, 2026

The Business Guardian

The Business Guardian

Homeopathy: Natural, Safe, and Lasting Healing

Homeopathy is a system of medicine that, based on the laws of nature, works to balance both the body and mind with very precise dosages.

time to read

3 mins

January 07, 2026

The Business Guardian

The Business Guardian

AWS, IDFC FIRST BANK, AND CAMPUS FUND CONCLUDE GRAND CHALLENGE 2025, CELEBRATING INDIA'S BEST STUDENT STARTUPS

AWS, IDFC FIRST Bank, and Campus Fund have successfully concluded Grand Challenge 2025, India’s flagship national platform for student entrepreneurship.

time to read

2 mins

January 07, 2026

The Business Guardian

The Business Guardian

Confident of completing full term: Sidda on K’taka CM row

‘ ¥ + 7

time to read

1 mins

January 07, 2026

Listen

Translate

Share

-
+

Change font size