The Goods and Services Tax (GST) reforms announced by the government should progressively result in a sustained positive impact through significant gains in ease of doing business, lower retail prices and strengthening of consumption growth drivers, Reserve Bank of India’s (RBI) Bulletin said.
Beyond rate simplification, the reforms have also addressed challenges relating to inverted duty structure, and made processes business-friendly, particularly benefiting micro, small and medium enterprises, and startups, the bulletin said.
Overall, these reforms are expected to boost tax buoyancy, improve compliance, and contribute to greater ease of living as well as ease of doing business, the bulletin added.
On September 3, the goods and services tax council cut levies on small cars, televisions, air conditioners, textiles and a range of household goods from September 22, in a major rate overhaul aimed at spurring consumption ahead of the festive season, even as Trump's tariffs threaten the country's exports.
Further bulletin added that CPI headline inflation edged up but remained well below the target rate for the seventh consecutive month. Food group largely contributed to the pickup in overall inflation. Core inflation (CPI excluding food and fuel inflation) also increased at the margin, driven primarily by the uptick in gold prices.
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