New Delhi, Sep 3
Economists on Wednesday said that the ongoing 56th meeting of the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, could pave the way for a major tax reform that will directly benefit consumers.
They say that any revision in the GST slabs will make goods cheaper and give a strong push to demand in the economy.
“When goods become cheaper, demand will rise. Increased consumption will boost GDP growth. This is not just about tax restructuring or price reduction, it is also about simplifying return filing and compliance,” he explained.
“Disposable income in the hands of households will increase, giving people more room to spend compared to before,” Sharma said.
Economists agree that the proposed changes in GST will not only simplify the indirect tax system but also provide a strong stimulus to consumption-led growth in the Indian economy.