'Govt is about to lose ₹48,000 cr': But here’s how GST 2.0 could make you richer, explains finfluencer

The government is set to lose ₹48,000 crore in tax revenue—but that might be the best news India’s middle class has heard in years. According to finance influencer Sharan Hegde, the new GST regime launching September 22 isn’t about revenue—it’s about unlocking spending power.

Dubbed GST 2.0, the overhaul simplifies India’s indirect tax system from four tiers (5%, 12%, 18%, 28%) to just two standard rates—5% and 18%, plus a 40% rate reserved for luxury and sin goods. It’s the biggest structural tax change since GST’s launch in 2017.

Hegde, a former PwC consultant, wrote on LinkedIn that the new regime could remove a massive compliance burden on small businesses and reduce everyday costs for the average Indian. “Back when I was at PwC, I saw how complex GST compliance killed small businesses,” he said.

More importantly, consumers could start to feel the impact almost immediately. “Now imagine: your AC bill drops by 10%. Your car EMI calculation changes. Your insurance gets cheaper,” Hegde noted.

The ₹48,000 crore in projected tax loss is being repositioned as stimulus, not slippage. Hegde argues it’s money returning to consumers—potentially triggering up to ₹2 lakh crore in increased spending. “More money → More spending → More economic activity → More tax collection,” he wrote.

The government is betting on a formula seen in economies like Singapore and New Zealand: lower rates, simpler compliance, higher consumption. Hegde says the real gain isn’t immediate revenue, but economic velocity.

“If you were planning to buy that AC or car, wait till September 22,” he advises. “If you're paying high insurance premiums, get ready for relief.”

More than a tax reform, GST 2.0 may represent a shift in fiscal mindset—from control to catalysis.