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The government hopes that this would benefit consumers and manufacturers as it hopes that it can increase demand and supply
The GST projection by the government is at an estimated growth rate of 7.5%.
The stage is set for the big goods and services tax (GST) council meeting on September 3 and 4, where the government is hopeful of an announcement of a two-slab structure which would range from 0-5% and another one of up to 12-18%.
The government hopes that this would benefit consumers and manufacturers as it hopes that it can increase demand and supply.
For now, the figures are encouraging and have given the government and finance ministry the confidence to experiment. As per the data made available, the GST figures for the month have been high and crossed an increase of 9.6%. The refunds have also gone up by 8.8% which is a sign of a trade balance tilted in favour of India.
Moreover, the GST projection by the government is at an estimated growth rate of 7.5% and this is one more reason why the government wants to be bold and bring in the new generation of GST.
Apart from this, the figures available and released by the finance ministry also show that the UPI transactions crossed 20 billion transactions in the month of August 2025 alone. All of this, as per sources, has given the government an indication that it’s time to take a chance with the rates.
The focus of the new rates will be consumers. The government wants that businesses must pass on the benefit to the consumers. So items such as pencils, computers, cars, mobiles, and some medicines could get cheaper. It hopes that this would entice people to buy more and spend more, which would, in turn, add to the economic growth cycle.
There is some political concern though. Some, like Karnataka Chief Minister Siddaramaiah, have said that there could be a loss of Rs 15,000 crore to states and the Centre must compensate.
The Centre feels that opposing the new structure would give the Opposition states the tag of being anti-people. For now, most have on record expressed their willingness to support the new structure.
But one never knows what happens behind closed doors.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
Read More
