The government may lose revenue by cutting the rates of Goods and Services Tax (GST) in the country. It is estimated that due to a reduction in GST rates, the Central Government could lead to a revenue deficit of Rs 3700 crore in FY 2026, a gross revenue deficit of Rs 48000 crore and a net revenue deficit of Rs 25794 crore. This is estimated in the State Bank of India (SBI) report.
GST rates decreased from 4 to 2 percent
Explain that in the 56th meeting of GST Council, Finance Minister Nirmala Sitharaman had decided to cut GST rates. Earlier, 4 rates of GST were 5, 12, 18 and 28 percent, but now these rates have come down to only 5 and 18 percent. At the same time, 40 percent GST has been announced on luxury and harmful products. The biggest advantage of this change is being told to the middle class people, because changes in GST rates will reduce the prices of many things.
Estimated deficit to the government
According to SBI report, according to the FY 2024 data, the revenue deficit was estimated to be Rs 6960 crore, but due to the increase in consumption and growth, the deficit is estimated to be Rs 3740 crore in FY 2026. Based on the FY 2024 data, the gross revenue deficit in FY 2026 is estimated to be Rs 93,000 crore, but with additional revenue collection, the gross revenue deficit can be Rs 48,000 crore. At the same time, the net revenue deficit is estimated to be Rs 1.11 lakh crore, which can be Rs 25794 crore due to high tax revenue and strong consumption rate. Explain that the report of State Bank of India also said that due to decrease in GST rates, the government has received additional revenue of about 1 trillion.