GST overhaul: Rs 1.1 trillion worth revenue might be lost; UBS says fiscal cost manageable

The government's GST rate rationalisation, expected before Diwali, aims to benefit consumers and MSMEs. A UBS report indicates a manageable revenue loss of 0.3% of GDP, potentially offset by cess collections and RBI dividends. Scrapping the 12% slab and shifting items between 5% and 18% rates are proposed, while luxury goods face a higher special rate.