Big tax shake-ups don’t happen every day. And this one is sweeping—GST 2.0 cuts the slabs to just two (5% and 18%) and lowers rates on everything from household essentials to everyday services. For consumers, that means cheaper bills and a festive-season shopping boost. For the government, though, it raises a tough question: will short-term cheer come at the cost of shrinking revenues? Officials peg the annual loss at around ₹48,000 crore. Not peanuts, but not unmanageable either, they argue. The bet is simple: lighter taxes fuel consumption, higher demand revives private investment, and eventually, faster GDP growth fills government coffers. Sounds good on paper, but can it play out in reality, especially when both direct and indirect tax collections are already lagging behind budget targets? The Centre has set a stiff 4.4% fiscal deficit target for FY26. Missing it could hurt credibility, though buffers exist—spending cuts, RBI dividends, and disinvestment proceeds from IDBI Bank and LIC. So is GST 2.0 a bold growth catalyst or a risky fiscal gamble? Read the full explainer by N Madhavan. Market WatchMarkets surrendered early GST-driven gains as profit-taking dragged indices off highs. The Sensex closed 150 points higher at 80,718 and the Nifty added 19 points to 24,734, but both ended well below intraday peaks. Midcaps bore the brunt, sliding 1,100 points from highs, while the rupee weakened to 88.15/$ from 88.07/$ in the previous close. Click here to know the factors that moved the market today. Premium readsHow FMCG and appliance makers plan to pass on GST benefits to consumers GST rate cuts won’t touch gold and silver—why precious metals stay at 3% GST revamp may spur hiring as companies boost output to meet festive demand Inox Wind may find margin tailwinds, but execution clouds linger Get a head start on tomorrow’s Print editionMint News: Weight-loss drugs are reshaping the snack shelf—one bite at a time Mark to Market: Auto GST changes: The winners and the proxy plays Mint Money: Phantom loans wrecking your credit score?Fix them and claim compensation Mint Explainer: What’s behind Jane Street’s SAT appeal against Sebi in the index manipulation case Sneak a PeekLong Story, a much-loved Mint feature, is published every weekday. Before the next piece hits the stands, here’s your exclusive glimpse into what’s brewing on our desk. Catch the story in the morning edition. How Bharat Forge is reinventing itself for the digital era Baba Kalyani wants to transform his six-decade-old forging company into a digitally-driven, automation-first technology powerhouse straddling defence, aerospace, mobility, and now even AI infrastructure. But will those bets pay off, especially since forging still makes up 80% of its revenue? More on GST...GST revamp brings 40% ‘sin & luxury’ slab The GST Council has approved a major tax overhaul, replacing the four-slab system with two tiers—5% and 18%—effective September 22. A special 40% slab will be levied on ‘sin goods’ like tobacco, pan masala, and sugary drinks, as well as luxury items such as big cars and personal-use aircraft. This highest rate, set to replace the compensation cess, will kick in only after existing debt obligations are cleared. Love a Mint story? Here's how to support it.Do you have a favourite writer at Mint? Every day, we strive to publish stories that need to be told, and your digital subscription makes all the difference. It tells us we’re on the right track and helps us continue delivering the in-depth journalism you rely on. If you’re not yet a subscriber, now’s the perfect time to join! Starting today, many of our staff writers are sharing special, personalized discount coupon codes. So if there's a Mint writer whose work you admire, reach out to them on social media or via email and ask for their unique coupon code! (And if you're already a subscriber, a quick note telling them you appreciate their work would still make their day!) Note: The coupon codes are available only with in-house writers, and not our external columnists. If your request for a code fails, please write to me at shravani.sinha@livemint.com. Thanks for reading! Edited by Rashmi Sanyal. Produced by Shad Hasnain.
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गुरुवार, 4 सितंबर 2025
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