{"id":11063,"date":"2025-09-08T00:55:59","date_gmt":"2025-09-08T00:55:59","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/08\/gst-revenues-may-soften-initially-festive-sales-to-drive-recovery-cbic-chief-economy-news\/"},"modified":"2025-09-08T00:55:59","modified_gmt":"2025-09-08T00:55:59","slug":"gst-revenues-may-soften-initially-festive-sales-to-drive-recovery-cbic-chief-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/08\/gst-revenues-may-soften-initially-festive-sales-to-drive-recovery-cbic-chief-economy-news\/","title":{"rendered":"GST Revenues May Soften Initially, Festive Sales To Drive Recovery: CBIC Chief | Economy News"},"content":{"rendered":"


\n<\/p>\n

\n

Last Updated:<\/span>

CBIC says GST 2.0 may cause a short-term dip in collections, but festive demand and smoother compliance will boost recovery soon.<\/h2>\n
\n
\n
\n
\n
\"font\"<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\"GST<\/p>\n

GST Revenue<\/p>\n<\/figure>\n

The Central Board of Indirect Taxes and Customs (CBIC) on Thursday said Goods and Services Tax (GST) collections could witness a temporary decline in the initial months after the rollout of the overhauled GST 2.0 framework, PTI reported.<\/p>\n

\u201cExpect some dip in GST collection for initial months, as taxes are paid through accumulated ITC, but festive demand will boost sales,” CBIC chief Sanjay Kumar Agarwal said.<\/p>\n

To ensure a smooth transition, Agarwal added that the GST department is working closely with industry stakeholders to upgrade and align IT systems. \u201cGST dept coordinating with industry to upgrade software for smooth, glitch-free rollout of overhauled tax structure,” he noted.<\/p>\n

He expressed confidence that the new tax slabs and computation system\u2014effective from September 22\u2014will be implemented without disruption. Businesses and industry players, he said, have a two-week window to adjust their back-end systems.<\/p>\n

The remarks come a day after Finance Minister Nirmala Sitharaman announced a sweeping revamp of the GST regime. The four-tier structure has now been collapsed into two main slabs of 5% and 18%, along with a special 40% rate for high-end and \u201csin” goods such as cigarettes, pan masala, gutkha, and aerated beverages. Additional levies above 40% have been scrapped, reducing the effective tax burden on mid-size and large cars.<\/p>\n

According to government estimates, the tax cuts could lead to a revenue loss of around Rs 48,000 crore\u2014significantly lower than some economists\u2019 projections of Rs 1 lakh crore. However, the Centre expects the move to stimulate consumption and ease inflationary pressures. Citi has forecast that retail inflation may fall by up to 1.1 percentage points if the full rate cuts are passed on to consumers.<\/p>\n

The revised tax framework will also bring tighter compliance for sectors such as tobacco, where valuation will now shift from transaction value to retail sale price. At the same time, while most consumer goods will benefit from lower rates, certain categories including apparel above Rs 2,500 and coal have seen tax hikes.<\/p>\n

\n
\n
<\/p>\n
\"authorimg\"<\/figure>\n

<\/span><\/p>\n

Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

First Published:<\/span><\/p>\n
\n

September 05, 2025, 07:54 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> GST Revenues May Soften Initially, Festive Sales To Drive Recovery: CBIC Chief<\/span><\/div>\n
\n
\n
Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use<\/a> and Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n

Read More<\/span><\/p>\n<\/div>\n


\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Last Updated:September 05, 2025, 07:54 IST CBIC says GST 2.0 may cause a short-term dip in collections, but festive demand and smoother compliance will boost recovery soon. GST Revenue The Central Board of Indirect Taxes and Customs (CBIC) on Thursday said Goods and Services Tax (GST) collections could witness a temporary decline in the initial…<\/p>\n","protected":false},"author":1,"featured_media":10205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-11063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/11063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=11063"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/11063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10205"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=11063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=11063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=11063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}