GST reforms will not pose major fiscal burden on government: Report
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New Delhi: The recent Goods and Services Tax (GST) rationalisation will not have a significant fiscal burden on the government, a Crisil report has said. The government has estimated a net loss of an annualised Rs 48,000 crore in revenue in the short term on account of GST reforms.
Total GST collections in the previous fiscal were Rs 10.6 lakh crore; hence, the loss does not seem significant, according to a Crisil Ratings report. Citing the method of recalibration of the tax rates, the report emphasised that the move to reduce rates will unlikely to pose a major pressure on the government revenue.
“As of fiscal 2024, the majority (70-75 per cent) of GST revenue came from the 18 per cent slab. Only 5-6 per cent was from the 12 per cent slab and 13-15 per cent from the 28 per cent slab,” the report noted.
