GST Reforms Will Not Cause Serious Fiscal Slippages: Analyst

Brokerages have hailed the proposed GST simplification and rate rejig, saying it will give a boost to the sagging domestic consumption without causing serious fiscal slippages.

- ENS ECONOMIC BUREAU @ Mumbai

According to them, it will lead to only a 30 bps impact on the GDP, making the tax giveaways fiscally viable.

In a note on Monday, Tanvee Gupta Jain, chief economist at UBS Securities India, said the next set of GST reforms will likely buoy consumption without impacting fiscal consolidation, apart from being deflationary.