The State Bank of India (SBI), in its latest research report, has said that the government’s decision to rationalise Goods & Services Tax (GST) rates will result in only a negligible revenue loss of around ₹3,700 crore.
As estimated by the government, the overall fiscal impact of the reforms is nearly ₹48,000 crore annually, with a 40% de-merit rate applied to select goods and services.
The 56th GST Council meeting recently approved a new two-tier structure, replacing the earlier four-rate system with a standard 18% and 5% rate, alongside the 40% slab for de-merit goods.
According to SBI, the move is expected to boost consumption, create cost efficiencies, and benefit sectors such as banking.
The report also noted that the effective weighted average GST rate, which stood at 14.4% in 2017, is expected to fall to 9.5%. This could moderate CPI inflation by up to 75 basis points over 2026–27.
, in its latest research report, has said that the government’s decision to rationalise Goods & Services Tax (GST) rates will result in only a negligible revenue loss of around ₹3,700 crore.){kind=link}