GST 2.0: A Catalyst for Economic Growth
The GST Council has approved significant changes to the goods and services tax, aiming to bolster consumption and credit expansion, thus driving economic growth. With tax reductions, particularly on household goods and insurance, consumer costs will decrease, boosting disposable incomes and stimulating demand across various sectors, including retail and banking.
- Country:
- India
The recent decisions by the GST Council are set to invigorate the Indian economy, according to experts in banking and finance. On Wednesday, a comprehensive overhaul of the goods and services tax was sanctioned, reducing levies on essential items such as hair oil, corn flakes, and insurance services.
According to SBI Chairman CS Setty, the new two-tier GST structure, featuring reduced rates on household goods, is a substantial step in India's indirect tax reforms. This move is expected to enhance consumer spending power by lowering living costs and increasing disposable incomes.
PNB MD Ashok Chandra highlighted the prospective benefits for the banking sector, particularly through heightened demand in credit and financial services. Moreover, the reform, effective from September 2025, is expected to drive domestic demand, reduce inflation, and support economic growth.
(With inputs from agencies.)
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