Tuesday, 7 Oct 2025
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Subscribe
Brinks Report
  • Featured
  • Money Matters
  • Business
  • IPL
  • Technology
  • Automobile
  • Entertainment
  • Sports
  • More
    • People
    • World
    • Health and Wellness
    • Horoscope
  • Today’s News
  • 🔥
  • World
  • Business
  • Economy
  • Technology
  • Automobile
  • Entertainment
  • People
  • Sports
  • India
  • IPL
Font ResizerAa
Brinks ReportBrinks Report
Search
  • Featured
  • Money Matters
  • Business
  • IPL
  • Technology
  • Automobile
  • Entertainment
  • Sports
  • More
    • People
    • World
    • Health and Wellness
    • Horoscope
  • Today’s News
Have an existing account? Sign In
Follow US
© 2024-2025 Brinks Report. All content, including text, images, and other media, is copyrighted.
Brinks Report > Blog > Economy > GST 2.0 may boost spending by ₹1.98 lakh cr, but govt risks ₹85k cr annual revenue loss: SBI
EconomyBusiness

GST 2.0 may boost spending by ₹1.98 lakh cr, but govt risks ₹85k cr annual revenue loss: SBI

Ankita Das
Last updated: August 20, 2025 11:22 am
Ankita Das
Share
Website image 2025 08 20t111857. 813
SHARE
Trulli

The government is planning big changes to the Goods and Services Tax (GST). According to a new report by SBI Research, the new GST system could increase household consumption by ₹1.98 lakh crore, but it may also cause the government to lose about ₹85,000 crore in revenue every year.

What is being proposed?

  • The current GST has four tax slabs – 5%, 12%, 18% and 28%.
  • The new GST 2.0 system will have only two main rates:
    • 5% for essential goods like food and clothing.
    • 18% for other standard goods and services.
  • A 40% tax will remain on harmful items like pan masala and tobacco.

How will this affect people?

  • Household goods will get cheaper, which means people will spend more.
  • Consumption is expected to rise by ₹1.98 lakh crore, giving the economy a 0.6% GDP boost.
  • Inflation (rise in prices) will not increase; in fact, it may reduce slightly:
    • Consumer inflation could fall by 20–25 basis points.
    • Food inflation may drop by 10–15 basis points.
  • Along with the recent income tax cuts, overall household spending could rise by ₹5.31 lakh crore, which is about 1.6% of India’s GDP.

Impact on government revenue

  • While people will benefit, the government could lose ₹85,000 crore every year due to lower taxes.
  • For the current year, if GST 2.0 starts from October, the revenue loss would be about ₹45,000 crore.

Read more: Gold Price Prediction Today: Why Are Rates Stuck in a Range?

Trulli

What’s next?

  • A panel of state finance ministers will review the proposal this week.
  • After that, the GST Council will take the final decision next month.
  • Prime Minister Narendra Modi has called this a “next-generation reform” and said it could be rolled out by Diwali.
Image Slider
Image 1 Image 2 Image 3
TAGGED:EconomyGSTReformsSBI
Share This Article
Facebook Whatsapp Whatsapp Copy Link Print
What do you think?
Love0
Sad0
Happy0
Joy0
Sleepy0
Angry0
Surprise0
Previous Article Website image 2025 08 20t110401. 100 Gold Price Prediction Today: Why Are Rates Stuck in a Range?
Next Article Website image 2025 08 20t113557. 637 India removes 11% duty on raw cotton imports for 40 days to ease pressure on textile sector
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your Trusted Source for Accurate and Timely Updates!

Brink’s Report delivers fresh, unbiased, and engaging content across politics, business, tech, entertainment, and more. From breaking news to deep dives, we keep you informed—and intrigued—with accurate reporting and diverse perspectives. Explore the world, one story at a time.
FacebookLike
XFollow
RSS FeedFollow
Ad image

You Might Also Like

Starlink
BusinessTechnology

This Country Will Be Europe’s First to Launch Starlink Mobile – But Not for Speed

By
Dolon Mondal
Mahindra
Business

How Mahindra’s ₹42,599 Crore Sales Surge Is Changing India’s Auto Landscape

By
Dolon Mondal
Syngene international
Business

Tata Investment Shares Rise 6% After Tata Capital Updates IPO Draft

By
Dolon Mondal
Brinks report website 2025 08 25t110251. 706
EconomyBusiness

Stock Market Today: Nifty50 Opens Above 24,900, Sensex Gains Over 200 Points

By
Ankita Das
Ad image

About US


Brink’s Report delivers fresh, unbiased, and engaging content across politics, business, tech, entertainment, and more. From breaking news to deep dives, we keep you informed—and intrigued—with accurate reporting and diverse perspectives. Explore the world, one story at a time.

Top Categories
  • World
  • Business
  • Economy
  • Technology
Usefull Links
  • Contact Us
  • About Us
  • Privacy Policy
  • DMCA

© 2024-2025 Brinks Report. All content, including text, images, and other media, is copyrighted.