Global financial services firm Bernstein also echoed similar sentiments to those of several other experts that the sweeping GST rate cuts will boost India's consumption.
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The tax revenue foregone due to GST rate cuts will eventually push India's fiscal deficit above the government's target of 4.4 per cent of GDP in FY26, unless the gap is absorbed by slowing down capital expenditure intensity, according to a report by JM Financial.
Union Finance Minister Nirmala Sitharaman on Friday announced that the foremost priority of the government is to ensure that the benefits of the GST tax reforms reach all the common people of the country.
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Terming the GST reforms as a "big vigilance" exercise, the Union Minister mentioned that the government has a lot of work after September 22 and expressed confidence that the benefits of the GST reforms will reach the common people.
The reduction in GST on cement from 28 per cent to 18 per cent is expected to be a game-changer for the sector, according to a sector report by Nuvama Institutional Equities.
Rationalisation of tax rates on construction material is expected to cut the construction cost for the real estate sector by 3.5 to 4.5 per cent, according to a report by Crisil Intelligence. The government has announced to cut GST rates on cement, marble, granite, sand, bricks, etc substant
The latest Goods and Services Tax (GST) rate rationalization is expected to give a strong boost to the fast-moving consumer goods (FMCG) sector, according to a report by Nuvama.
The central government is expected to face a revenue shortfall of Rs 10,664 crore in Integrated Goods and Services Tax (IGST) receipts due to the recent GST rate rationalization, according to an analysis report by the Global Trade Research Initiative (GTRI).
Union Minister of Commerce and Industry Piyush Goyal has assured that the benefits of the reduction in Goods and Services Tax (GST) rates will be fully passed on to the common man, with industries across all sectors committing to implement the reforms in letter and spirit.
Union Minister Nityanand Rai hailed the reforms in the Goods and Services Tax (GST) and said that the poor people, farmers, labourers, and the middle class will benefit from the tax cuts.