Govt ready to absorb ₹50,000 Cr hit for consumption boost
Internal government assessments suggest that GST cut could cause a revenue loss between ₹40,000 and ₹50,000 crore. However, the Centre is willing to absorb the short-term impact. It expects that the lower prices will trigger a rise in consumption, which could widen the tax base and eventually increase GST revenue over the long term.