Lok Sabha Question No. 2327 (UNSTARRED), answered on 2025-12-15
Subject: GST 2.0 Structure and Economic Impact
Ministry: FINANCE
Asked by: Shri Khagen Murmu, Shri Bidyut Baran Mahato, Shri S Venkatesan, Dr. Hemant Vishnu Savara, Shri Dharambir Singh, Shri Ramesh Awasthi, Smt. Shobhanaben Mahendrasinh Baraiya, Shri Pradeep Kumar Singh, Shri Krishna Prasad Tenneti, Dr. Hemang Joshi, Shri Mukeshkumar Chandrakaant Dalal, Shri Shankar Lalwani, Smt. Vijaylakshmi Devi, Smt. Kamlesh Jangde, Smt. Himadri Singh, Shri Anil Firojiya, Shri Vijay Baghel, Shri Praveen Patel, Shri Yogender Chandolia, Shri Anurag Singh Thakur, Smt. Anita Nagarsingh Chouhan, Shri Vijay Kumar Dubey, Shri Dulu Mahato, Shri P C Mohan, Shri Manoj Tiwari, Shri Dineshbhai Makwana, Shri Anup Sanjay Dhotre, Shri Vishweshwar Hegde Kageri, Shri Dilip Saikia, Smt. Mahima Kumari Mewar, Shri Damodar Agrawal, Shri Lumbaram Choudhary, Shri P P Chaudhary, Shri Mahesh Kashyap, Shri Satish Kumar Gautam, Shri Vishnu Dayal Ram, Dr. Bhola Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

## UNSTARRED QUESTION NO. 2327

TO BE ANSWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA)

GST 2.0 STRUCTURE AND ECONOMIC IMPACT

## 2327. SMT. MAHIMA KUMARI MEWAR:

SHRI PRAVEEN PATEL:

SMT. VIJAYLAKSHMI DEVI:

SHRI DULU MAHATO:

SHRI VISHWESHWAR HEGDE KAGERI:

SMT. HIMADRI SINGH:

SHRI BIDYUT BARAN MAHATO:

DR. BHOLA SINGH:

SMT. KAMLESH JANGDE:

SHRI VIJAY BAGHEL:

SHRI P P CHAUDHARY:

DR. HEMANG JOSHI:

SHRI PRADEEP KUMAR SINGH:

SHRI DAMODAR AGRAWAL:

SHRI DILIP SAIKIA:

SHRI MUKESHKUMAR CHANDRAKAANT DALAL:

DR. HEMANT VISHNU SAVARA:

SHRI P C MOHAN:

SHRI S VENKATESAN:

SHRI RAMESH AWASTHI:

SHRI YOGENDER CHANDOLIA:

SHRI VISHNU DAYAL RAM:

SHRI VIJAY KUMAR DUBEY:

SHRI DINESHBHAI MAKWANA:

SHRI LUMBARAM CHOUDHARY:

SHRI ANUP SANJAY DHOTRE:

SHRI ANIL FIROJIYA:

SMT. ANITA NAGARSINGH CHOUHAN:

SHRI MANOJ TIWARI:

SHRI ANURAG SINGH THAKUR:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

SHRI SHANKAR LALWANI:

SHRI DHARAMBIR SINGH:

SHRI KRISHNA PRASAD TENNETI:

SHRI SATISH KUMAR GAUTAM:

SHRI KHAGEN MURMU:

SHRI MAHESH KASHYAP:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has undertaken an official assessment of  the  manner  in  which  GST  2.0  proposes  to  support  India's economic growth;
- (b)  the  details  of  the  expected  contribution  to  Gross  Domestic Product (GDP) growth and formalisation from simplified tax structure and increased tax compliance;
- (c) the details of the projected improvements in household consumption and trade competitiveness across the sectors particularly e-commerce, essential health services and basic economy due to reduction in tax burden;
- (d)  the  details  of  the  measures  taken  to  strengthen  country's position as global manufacturing and investment destination under the enhanced ease of doing business through GST 2.0 under Viksit
- Bharat 2047 vision;
- (e) whether the Government maintains the record of GST collection across  the  country  during  the  last  five  years  particularly  in  Pali Parliamentary  Constituency,  district/month-wise,  if  so,  the  details
- thereof;
- (f) whether there has been an increase in GST Collection since the GST  2.0  reforms,  if  so,  the  details  thereof,  particularly  in  Pali Parliamentary Constituency;
- (g)  whether  business-related  data, taxpayer onboarding and MSME compliance trends for  Bhiwani  and  Mahendragarh  districts  will  be separately  tracked  and  supported  under  GST  2.0,  considering  the constituency's growing industrial clusters and logistics connectivity needs;
- (h) whether GST 2.0 is expected to ease ITC flow for small business, exporters; and
- (i)  whether  the  Government  has  undertaken  consultation  with States, industry bodies and economists to ensure smooth transition of GST 2.0?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a),  (b)  and  (c)  GST  2.0  has  simplified  and  rationalised  the  rate structure. The reduction in tax burden on essential goods, services and  emerging  sectors  is  expected  to  lower  the  cost  of  living, improve affordability, and stimulate household consumption demand.  Lowering  of  GST  rates  on  basic  consumer  items  and certain specified services is expected to enhance trade competitiveness and support domestic industry At the same time, a simplified  two-rate  structure  is  expected  to  reduce  transaction costs, ease compliance burden, and encourage small businesses to enter  the  formal  sector,  thereby  supporting  greater  formalisation, and widening the tax base. These measures collectively are likely to  boost  GDP  growth  by  stimulating  consumption,  encouraging investment, and promoting job creation.

Recent trends in high-frequency indicators such as higher e-way bill generation, improved Purchasing Managers' Index (PMI) readings for manufacturing and services, record festive-season automobile sales, robust UPI transactions, and increased tractor sales, indicate strengthening  economic  momentum  in  September-October  2025 following the GST reforms.

- (d)  Aligned  with  the  Viksit  Bharat  2047  vision,  GST  2.0  also strengthens India's position as a global manufacturing and investment destination. Through rate reductions across key sectors, the  GST  2.0  reform  is  expected  to  provide  a  strong  stimulus  to domestic  industry  and  investment.  Lower  GST  on  cement  and construction  materials  is  expected  to  reduce  project  costs  and accelerate  the  construction  of  real  estate  and  infrastructure.  The GST  reduction  from  28%  to  18%  on  small  cars,  two-wheelers  and auto-parts  is  expected  to  boost  demand  and  strengthen  India's automotive  manufacturing  base.  The  GST  exemption  on  specified life-saving drugs, individual health insurance, individual life insurance,  including  reinsurance  and  concessional  5%  rate  on medical  devices  is  likely  to  improve  healthcare  access.  Similarly, reduction of GST on manmade fibres and yarns, carpets, intermediate  leather  products  etc  is  expected  to  support  labourintensive MSMEs and expand export potential, thereby collectively reinforcing  India's  growth  and  investment  momentum  under  the reformed GST regime.
- (e)  The  Government  does  not  maintain  record  of  GST  Collection constituency wise or district/month wise.

The  details  of  gross  GST  collection  during  the  last  five  years  in  the country is as given below:

| Year                     | Gross Revenue (in Rs. Cr.)   |
|--------------------------|------------------------------|
| 2020-21                  | 11,36,805                    |
| 2021-22                  | 14,83,291                    |
| 2022-23                  | 18,07,680                    |
| 2023-24                  | 20,18,249                    |
| 2024-25                  | 22,08,859                    |
| 2025-26 (Till Nov. 2025) | 14,75,488                    |

- (f) Gross Goods  and Services Tax (GST) revenue collected for November 2025 was ₹1,70,276 crores, registering a 0.7% increase compared to ₹1,69,016 crores for the same month last year. GST revenue collection data is not maintained constituency wise.
- (g) GST 2.0 envisages strengthening digital compliance, expanding the taxpayer base, and improving ease of onboarding. District wise data is not maintained.
- (h) As per present provisions of the GST Act, there is no provision for grant  of  provisional  refund  in  case  of  refund  claims  arising  out  of inverted duty structure. In order to provide relief to such taxpayers, the GST Council, in its 56th meeting, recommended amending the provisions  of  Central  and  State  GST  Acts  to  provide  for  provisional refund of 90% of the claimed amount in case of refunds arising out of inverted  duty  structure,  on  similar  lines  as  is  provided  for  zero  rated supply refund claims.

Further, pending requisite amendments in Central and State GST Acts, instructions  have been issued by the Central Board of Indirect Taxes and Customs (CBIC) to its field formations w.e.f. 1st October 2025, for grant  of  provisional  refund  equivalent  to  90%  of  amount  claimed  as refund arising out of Inverted Duty Structure on the basis of identification  and  evaluation  of  risk  by  the  system.  This  step  will ensure  that  the  working  capital  of  businesses  involved  in  supply  of goods having inversion in rate of inputs vis-à-vis output supplies, is not blocked.

- (i)  Yes,  the  Government  has  held  meetings  with  industry  bodies following the 56 th  GST Council meeting.

*****