'Ek teer kai nishaan': What market veteran Nilesh Shah says on GST cuts
Shah said the GST reform would not only lower inflation, but increase GDP growth and boost consumer sentiment, without disturbing the path of fiscal consolidation.
- Sep 4, 2025,
- Updated Sep 4, 2025 9:07 AM IST
Market veteran Nilesh Shah in an X post on Thursday called the GST slab consolidation and rate rationalisation as “ek teer kai nishaan”. Shah, who is Managing Director at Kotak Mahindra Asset Management Company said the GST reform would not only lower inflation but increase GDP growth and boost consumer sentiment, without disturbing the path of fiscal consolidation. He said the move would improve ease of doing business and partially offsets adverse effects of 'unfair' US tariffs.
In a landmark decision, the GST Council approved a sweeping rationalization of the GST regime, simplifying the existing four-slab structure into just two brackets: 5 per cent and 18 per cent. The Council though introduced a higher 40 per cent rate for select luxury and sin goods.
The new rates are effective from September 22 and net fiscal implication of the move is expected at about Rs 48,000 crore based on the consumption base of 2023-24
Shah said the "Diwali gift" of Rs 48,000 crore is fiscally manageable. Shah said the rationalisation of GST will partially help offset the adverse impact of US tariff in the quarters to come with increased consumption.
Completing two days GST council meeting in one day does show the urgency, he said. The GST Council meet was scheduled September 3-4.
"While the leakages and fraud of GST needs to be dealt with iron hand, process improvement should be a continuous affair with feedback loop. Savings misallocation happening through F&O speculation and double your money ponzi schemes making Indians quick money addicts costs more than four-five times the GST gift," he said.
Meanwhile, Garima Kapoor, Economist and Executive Vice President at Elara Capital said the GST rate changes look favorable especially since there is across the board decline in daily use items including services like hotel rates below Rs 7,500.
"Moreover, very critical items like cement have seen a cut from 28 per cent to 18 per cent, which should be huge positive for the infra sector. The efforts to further ease the compliance burden on tax filers is positive and should aid ease of doing business. Today’s GST rate changes, along with RBI’s rate cuts, income tax rebates announced in FY26 budget and easing inflation are all levers for a consumption uptick in the economy," she said.
Market veteran Nilesh Shah in an X post on Thursday called the GST slab consolidation and rate rationalisation as “ek teer kai nishaan”. Shah, who is Managing Director at Kotak Mahindra Asset Management Company said the GST reform would not only lower inflation but increase GDP growth and boost consumer sentiment, without disturbing the path of fiscal consolidation. He said the move would improve ease of doing business and partially offsets adverse effects of 'unfair' US tariffs.
In a landmark decision, the GST Council approved a sweeping rationalization of the GST regime, simplifying the existing four-slab structure into just two brackets: 5 per cent and 18 per cent. The Council though introduced a higher 40 per cent rate for select luxury and sin goods.
The new rates are effective from September 22 and net fiscal implication of the move is expected at about Rs 48,000 crore based on the consumption base of 2023-24
Shah said the "Diwali gift" of Rs 48,000 crore is fiscally manageable. Shah said the rationalisation of GST will partially help offset the adverse impact of US tariff in the quarters to come with increased consumption.
Completing two days GST council meeting in one day does show the urgency, he said. The GST Council meet was scheduled September 3-4.
"While the leakages and fraud of GST needs to be dealt with iron hand, process improvement should be a continuous affair with feedback loop. Savings misallocation happening through F&O speculation and double your money ponzi schemes making Indians quick money addicts costs more than four-five times the GST gift," he said.
Meanwhile, Garima Kapoor, Economist and Executive Vice President at Elara Capital said the GST rate changes look favorable especially since there is across the board decline in daily use items including services like hotel rates below Rs 7,500.
"Moreover, very critical items like cement have seen a cut from 28 per cent to 18 per cent, which should be huge positive for the infra sector. The efforts to further ease the compliance burden on tax filers is positive and should aid ease of doing business. Today’s GST rate changes, along with RBI’s rate cuts, income tax rebates announced in FY26 budget and easing inflation are all levers for a consumption uptick in the economy," she said.