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.
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.
यह कहानी The Business Guardian के September 07, 2025 संस्करण से ली गई है।
हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।
क्या आप पहले से ही ग्राहक हैं? साइन इन करें
The Business Guardian से और कहानियाँ
The Business Guardian
Three Teams from IPS Academy Indore Win Awards at Smart India Hackathon 2025 Indore
Three student teams from IPS Academy, Institute of Engineering and Science, Indore have brought laurels to the institute by winning awards at the prestigious Smart India Hackathon (STH) 2025.
1 mins
January 07, 2026
The Business Guardian
Profit booking weighs Indian stock benchmarks; Sensex dips 376 points
The selling spree in India’s stock markets continued on Tuesday, with both benchmark indices staying in the red through the session, largely due to profit booking amid relatively subdued sentiment and caution among investors.
1 mins
January 07, 2026
The Business Guardian
JNU seeks FIR over 'objectionable slogans' outside Sabarmati hostel
Jawaharlal Nehru University (JNU) has requested the police to register an FIR against students who allegedly raised “objectionable, provocative and inflammatory slogans” outside Sabarmati Hostel on Monday night.
1 mins
January 07, 2026
The Business Guardian
BIS HALLMARKING STRENGTHENING CONSUMER TRUST: UNION MINISTER PRALHAD JOSHI
Stressing that hallmarking has become a key instrument in protecting consumers and improving credibility for manufacturers.
2 mins
January 07, 2026
The Business Guardian
India sees rapid 5G growth, telecom expands
The year 2024-25 marked a defining phase for India's telecommunications and broadcasting sectors, backed by rapid technological progress, regulatory reforms, and expanding digital inclusion.
2 mins
January 07, 2026
The Business Guardian
Confident of completing full term: Sidda on K’taka CM row
Karnataka Chief Minister Siddaramaiah on Tuesday exuded confidence in the Congress high command amid the speculations about a change in the state's chief minister, after the Congress government reached the halfway mark of its five-year term on November 20.
1 mins
January 07, 2026
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.
2 mins
January 07, 2026
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.
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
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.
10 mins
January 07, 2026
Listen
Translate
Change font size
