Friday, Sep 5, 2025
English News
  • Hyderabad
  • Telangana
  • AP News
  • India
  • World
  • Entertainment
  • Sport
  • Science and Tech
  • Business
  • Rewind
  • ...
    • NRI
    • View Point
    • cartoon
    • My Space
    • Olympics
    • Education Today
    • Reviews
    • Property
    • Lifestyle
E-Paper
  • NRI
  • View Point
  • cartoon
  • My Space
  • Reviews
  • Education Today
  • Property
  • Lifestyle
Home | Business | Gst Overhaul May Lower Prices Boost Demand Say Economists

GST overhaul may lower prices, boost demand, say economists

Economists say the 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, may result in a significant reform of the GST structure that could simplify the tax regime and lower prices. Experts believe the changes would boost household disposable income, increase demand, and drive consumption-led growth.

By IANS
Published Date - 3 September 2025, 07:54 PM
GST overhaul may lower prices, boost demand, say economists
whatsapp facebook twitter telegram

New Delhi: Economists on Wednesday said that the ongoing 56th meeting of the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, could pave the way for a major tax reform that will directly benefit consumers.

They say that any revision in the GST slabs will make goods cheaper and give a strong push to demand in the economy.

Also Read

  • Ponzi scheme: ED arrests Capital Protection Force COO Aryan Singh in Rs 792-crore fraud

Economist Rajeev Sahu told IANS that the two-day council meeting is particularly crucial as it is expected to bring changes to the four-tier GST slab structure introduced in 2017.

“This will be a big reform, one that Prime Minister Narendra Modi had hinted at during his Independence Day speech from the Red Fort,” he said.

Currently, the GST regime has four slabs — 5 per cent, 12 per cent, 18 per cent and 28 per cent.

According to Sahu, the proposal under discussion includes merging the 28 per cent slab into the 18 per cent slab and bringing the 12 per cent slab down to 5 per cent. This, he noted, would make most products significantly cheaper.

Economist Surya Narayanan echoed the view, saying that prices of goods, particularly fast-moving consumer goods (FMCG), could fall by at least 15 per cent.

“When goods become cheaper, demand will rise. Increased consumption will boost GDP growth. This is not just about tax restructuring or price reduction, it is also about simplifying return filing and compliance,” he explained.

Manoranjan Sharma, Chief Economist at Infomerics Ratings, said the new framework would leave only the 5 per cent and 12 per cent slabs, which would directly benefit the common man.

“Disposable income in the hands of households will increase, giving people more room to spend compared to before,” Sharma said.

Economists agree that the proposed changes in GST will not only simplify the indirect tax system but also provide a strong stimulus to consumption-led growth in the Indian economy.

  • Follow Us :
  • Tags
  • GST Council
  • Nirmala Sitharaman

Related News

  • Telangana seeks Central assistance of Rs 16,732 crore for rain relief

    Telangana seeks Central assistance of Rs 16,732 crore for rain relief

  • Kerala faces Rs 8,000–10,000 crore revenue loss after GST rate cuts: FM Balagopal

    Kerala faces Rs 8,000–10,000 crore revenue loss after GST rate cuts: FM Balagopal

  • Congress president Mallikarjun Kharge calls GST revamp ‘1.5’, insists wait for ‘true GST 2.0’ continues

    Congress president Mallikarjun Kharge calls GST revamp ‘1.5’, insists wait for ‘true GST 2.0’ continues

  • Health experts slam GST cut on bidis, call it setback to tobacco control

    Health experts slam GST cut on bidis, call it setback to tobacco control

Latest News

  • Odisha CM’s flight diverted to Kolkata due to inclement weather

    2 seconds ago
  • World celebrities pay tribute to Giorgio Armani

    10 mins ago
  • ‘Street Fighter’ reboot goes on floors; Vidyut Jammwal makes Hollywood debut as Dhalsim

    16 mins ago
  • Yuki Bhambri’s US Open semifinal run marks a new beginning in Indian tennis

    42 mins ago
  • 3 IAF Chinooks airlift 135 Manimahesh devotees to safety in Himachal

    1 hour ago
  • Chunky Panday calls daughter Ananya Panday’s glam ‘comedy show’

    2 hours ago
  • Adani Power gets shareholders’ nod for 1:5 stock split

    2 hours ago
  • Live bullet found in passenger’s baggage at Hyderabad airport, police probes case

    2 hours ago

company

  • Home
  • About Us
  • Contact Us
  • Privacy Policy

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

  • Telangana Today Telangana Today
Telangana Today Telangana Today

© Copyrights 2024 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam