SBI Report on GST reforms: Modi government has given a big change in GST rates and has given relief from huge tax. After GST Reforms, now SBI has given great news to ordinary citizens. According to a report by SBI Research, inflation in the country will be reduced after the new GST rules are implemented. The country’s largest government bank has estimated that people can also get relief in inflation after the rate cut in GST.
Explain that in the 56th meeting of the GST Council, the old four -tier tax structure (5%, 12%, 18%, 28%) has been removed and approved by two -tier tax structure (5%and 18%). Also, a special tax rate of 40% has been fixed for some luxury goods and services. Under this, a lot of daily things have become cheaper and some have become tax free. The new tax rates will be applicable from 22 September 2025, except for tobacco and products.
After GST reforms, the country’s largest government bank State Bank of India has estimated that people can also get relief in inflation after the rate cut in GST. The report says that the GST rate of 453 goods has changed. Out of these, tax on 413 goods has decreased, while tax on only 40 goods has increased. GST on about 295 essential goods has come down from 12% to 5% or 0%. This will provide 60% benefit to customers, especially on food and drink, which can reduce the consumer value index-based inflation from 0.25 to 0.30%.
What will be the effect on retail inflation?
The SBI Research report said that in addition, making GST rates on services will reduce retail inflation on other goods and services by 0.40 to 0.45 percent. In this, customers have been estimated to get 50 percent benefit. According to the report, in total, retail inflation may decrease from 0.65 to 0.75 percent during the financial year 2026-27.
What was the average rate of GST?
The average GST rate in September 2019 had come down from 14.4% to 11.6% due to the rate rationalization of GST Council. Now after new changes, it can be reduced to 9.5%. The new GST rules will make the essential goods and services cheaper. This will reduce inflation and benefit common people.
