GST 2.0: Consumption will increase by 1.98 lakh crores, revenue deficit of 85 thousand crores will be

Last Updated: August 19, 2025, 23:42 IST Preparations for GST Reforms in India have tightened. SBI research says that although the new system will cause the government’s loss to the government, there will be a tremendous increase in consumption. The economy will get a boost through GST reforms. (Image: Ai) New -Delhi. There is a preparation for major changes in the GST system in the country. The central government has proposed GST 2.0 reforms on which the Finance Ministers will discuss. According to the latest SBI research report, even if the government loses an income of about 85,000 crore from these reforms, it is estimated that it is increasing the country’s consumption by Rs 1.98 Lakh Crore. What will be the change? GST rates will be simplified in the new system. At present, there are four main pages – 5, 12, 18 and 28 percent; The new system has only two tax sheets – 5 and 18 percent. In this, goods will be divided into ‘essential’ and ‘standard’ categories. At the same time, harmful items such as Pan Masala, tobacco to 40 percent will be taxed. What is the benefit of ordinary people? According to the report, new rates can reduce everyday needs such as food items and GST on 12 to 5 percent cloth. This is expected to reduce the inflation of the consumer price index (CPI) from 0.2 to 0.5 percent. Retail inflation may also be slightly soft due to the decline in prices in food items. The impact on the Economy SBI research estimate that increasing consumption will strengthen the economy and GDP will increase an extra increase of about 0.6 percent. The report said that in the current financial year (2025-26) from approximately October to March, the government could face a loss of about Rs 45,000. In addition, if you add cuts in the income tax rates announced in the budget, there will be an extra increase of Rs 5.31 lakh crore in consumer spending, which is about 1.6 percent of GDP. Who is Donald Trump’s trade guru? Know why notice about Russia’s oil agreement gives India to India? This proposal from the center will discuss the Minister of Finance of the States on Wednesday and Thursday. After consent, this proposal will be held at the GST council meeting next month. Prime Minister Narendra Modi indicated in the August 15 speech that the GST will improve the next generation improvements. If these changes apply, the government will lose income, but on the other hand, the general public will get relief, increased consumption and the economy will benefit greatly. About the Author Rakesh Singh Rakesh Singh is a main editor with 14 years of experience in media and publication. International matters, politics and agricultural areas of interest. Many articles written by Rakesh Singh published in … Read more Rakesh Singh is a editor -in -chief with 14 years of experience in media and publication. International matters, politics and agricultural areas of interest. Click here to add many articles written by Rakesh Singh published in … Read more to add News 18 as your favorite news source on Google. Location: New -delhi, Delhi First published: 19 August 2025, 23:42 IST Homebusiness GST 2.0: Consumption will increase 1.98 Lakh Crore will be an income shortage of 85 thousand crores