Crisil: GST cuts to boost consumer spending, revenue in FY26
Crisil says Indian companies are likely to see their revenues grow by 6-7% in FY26, thanks to the latest GST rate cuts.
The government hopes these tax changes will encourage people to spend more—especially with the festive season coming up.
While rules may keep profit margins from soaring, shoppers could notice lower prices on everyday items.
Prices of these items will fall
Two-wheelers under 350cc just got a lot more affordable with GST dropping from 28% to 18%.
Big-ticket consumer durables like air conditioners and large TVs might see prices fall by around 7-8%.
Car makers like Tata Motors and Mahindra & Mahindra are expected to pass on savings for small cars and bikes.
Even agriculture and construction sectors should benefit from lower costs.
Meanwhile, premium air travel gets a bit pricier as GST rises from 12% to 18%, but demand isn't expected to dip much.