The reduction of GST rates would have following consequences in India.
- It would lower the prices of some goods in India.
- It would make the businesses demand more reduction of GST on other commodities and services.
- It would reduce the GST collection for the Center and State Government of tens of thousands crores leaving lesser money for development and social welfare schemes.
- Government has become panicky nowadays due to the negative effect of GST on the common man who is suffering due to sudden rise of prices of the goods and services post GST.
Most of businesses, who are crying foul and playing victim of GST are actually the exploiter and beneficiary of the GST regime.