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Trump Tariff is currently in discussion at the global level. Recently, America has put heavy tariffs on Indian goods. These tariffs can harm India's exports, but the Government of India is busy preparing to give relief to the common man. The government is planning to implement major changes under GST 2.0, which can also have a big impact on Trump tariffs.

After the announcement of Prime Minister Modi, preparations for major changes have started in GST, which is being called GST 2.0. Under this, the government is thinking of removing two slabs 12% and 28% and bringing most things into the lower tax categories. This means that everyday things like food, clothes, household items can be cheaper now. This will reduce the burden on the pockets of the general public and also increase consumption. The government has called a meeting of the GST Council to be held on September 2-3, in which a final decision will be taken.

Will GST 2.0 reduce tariffs?

A research report by Moneycontrol told that according to economists, when things are cheap, people will shop more. This will increase demand in the market and increase sales of traders. It will act like a chain reaction because the goods will be sold, the factories will make more, get a job, and the economy will gain speed. Economists have said that GST cuts can reduce the impact of tariffs imposed by the US, that is, the loss that is being done in export can be compensated from the domestic market.

Inflation will also provide relief

It has also been told in the report that due to the cut in GST, the inflation of about 10% of the things of the consumption can directly decrease. This will provide relief to the common people. Economists believe that this may cause a decline of 50-60 basis points in a year in inflation.

However, each coin has two aspects. Some economists have said that GST cuts may reduce the government's earnings and the major loss in exports will not be able to compensate only with GST cuts. Therefore, this step is necessary, but one should not expect a big change from it.