By Admin 
GST 2.0: After the announcement of Goods and Services Tax i.e. GST reform and change in new tax slabs on behalf of the Central Government, it was expressed by the state governments that its revenue will be affected. The Center also admitted that the financial burden on the government may increase after the GST reform. But according to a report, there is no additional financial impact on any kind of government with GST reform.
Government will not be burdened
According to rating agency Crisil, the changes made in the recent GST rates will not cause any fiscal burden on the government. On Friday, the rating agency said in a report that due to the reduction in GST rate by the government, a net loss of about Rs 48,000 crore is estimated to be around Rs 48,000 crore, while in the financial year 2024-25 the total GST collection had increased to Rs 10.6 lakh crore.
This report further stated that this revenue loss is not very high in proportion to the total GST collection. It is worth noting that the GST Council has recently changed the tax structure and decided to keep it in two slabs of 5 percent and 18 percent. This amendment of GST reform will become effective from September 22 and after that the prices of many products and services will decrease.
Strong tax collection
According to the Crisil report, rationalizing GST rates will be able to bring more Goods and Services under the formal tax realm, which will strengthen tax collection in the medium period. Earlier 70-75% GST revenue used to come from 18% slab, while 12% slab used to get only 5-6% and 13-15% revenue from 28% slab. According to the report, there will be no significant loss to revenue due to reduced tax on goods included in 12% slab.
At the same time, rates on fast growing services like mobile fee are the same. Whereas new services like e-commerce delivery have been incorporated into the GST slab and taxed at the rate of 18%. Crisil said that tax cuts will increase the actual income of consumers, which can encourage both demand and GST collection. However, it will depend on to what extent producers deliver the benefit of change in tax to consumers.