Hyderabad: The Reserve Bank of India stated that RBI GST reforms would yield lasting benefits by enhancing the ease of doing business, reducing retail prices, and stimulating consumption growth. The RBI made the observations in its September bulletin released on Wednesday.
The bulletin noted that decisions taken by the GST Council in its September 3 meeting triggered major structural reforms. The RBI said the new framework simplifies tax rates and processes while balancing public needs with easier administration.
RBI bulletin highlights impact of GST reforms
The central bank pointed out that most essential items now attract either nil or 5 per cent GST. It added that the reforms also address the inverted duty structure and make processes more business-friendly. These include simpler registration, faster refunds, and lower compliance costs, particularly benefiting MSMEs and startups. According to the RBI, these steps will strengthen tax collections, improve compliance, and support both ease of living and ease of doing business.
The bulletin further projected higher passenger vehicle sales during the upcoming festive season, supported by GST rate cuts. It also flagged global uncertainty from US trade tariffs and fiscal stress in advanced economies.
The RBI said India’s economy showed resilience, recording a five-quarter high in Q1 growth driven by domestic demand. It added that CPI inflation edged higher but stayed below the target for the seventh straight month. Liquidity remained in surplus, which helped transmit rate cuts. The current account deficit narrowed on the back of strong services exports and steady remittances.
The bulletin also said equity markets moved in both directions during August and September.
