CEA: GST Reforms Simplify Structure, No Fear of State Revenue Losses

Chief Economic Advisor V. Anantha Nageswaran said that GST 2.0 reforms, including rationalization of slabs, will simplify the indirect tax system without jeopardizing state revenues. He argued that concerns about potential losses are premature, as improved compliance and widening of the tax base will likely sustain collections. Nageswaran highlighted that reforms are designed to enhance efficiency, minimize litigation, and make GST more business-friendly. He stressed that transparent sharing of revenue and the compensation mechanism have strengthened trust between Centre and states. Economists noted that the reassurance helps counter political apprehensions and provides confidence that simplification will not compromise fiscal federalism.