Revised GST Rates Make Families Save 4% According to the Budget 2020

The GST rate cuts announced in Budget 2020 by the finance minister, Nirmala Sitaraman will provide an annual benefit of INR 1 trillion to the Indian customers. This, in total, will help citizens in the country to save approx 4% of their monthly spending, according to the Union Budget speech 2020-21 made by the finance minister.

The Finance minister also stated that the primary objective of Union Budget 2020 is to make an increase in the spending power and average income of the Indian citizens to ensure exponential economic growth in the country. The positive economic growth will also boost employment opportunities for the youth of the country. She also said the union budget is also aiming towards an inclusive society in a country where the weaker gets equal opportunities to grow and can be saved from being vulnerable.

As per a recent survey by finance experts, the Indian economy is expected to grow According to the OECD’s latest Economic Outlook the Indian economic will be increased by 7.50 per cent in the year 2020 at 6 to 6.5% in FY 2020-21. The finance experts are also urging the government to take strong actions or made solid reforms to boost the country’s economic growth.

For the current financial year, the statistics ministry has estimated the economic growth to decelerate to a six-year low of 5%. The statistics ministry has also notified the senior finance ministers that Indian economic growth might decelerate to a six-year low of 5% in FY 2020-21.

According to the finance minister, Sitaraman, “GST (Goods Services Tax) has matured and has integrated the country economically by subsuming numerous taxes into one and has helped in the formalization of the economy. The effective tax rate on every commodity came down substantially.”. The minister further said that the overall benefit of INR 1 trillion provided to the consumers pans out in the form of a 10% reduction in tax rates Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28% on goods & services, leading to a 4% monthly savings for an average household in India.

The logistics and transport sector has been immensely benefited by the GST as it has reduced the truck’s turnaround time, according to the finance minister.

Besides this, the Indian government has been able to collect approx INR 1.11 trillion in GST in January 2020, which is also the second-highest monthly collection since the unfurling of GST in the country. This is also the third consecutive incident when the GST collection has crossed the INR 1 trillion figure Comparing with the numerals of January 2019, a clear hike of 12% is witnessed in the gross collection of GST for January 2020 month.