FM Nirmala Sitharaman Explains How Lower GST Rates Can Boost Revenue

A discussion took place in a council meeting regarding revenue and the non-static nature of its incidence. The argument presented was based on the economic theory that when rates are reduced, economic buoyancy increases, leading to more consumer purchasing. This point was reportedly made during the council's deliberations to underscore the potential effects of rate adjustments on the economy. A key part of the argument put forth was that "the center and the states are seated equally," highlighting the dynamic between central and state governments in discussions about revenue and the distribution of any resulting gains from policy changes.