Not GST, it's money.

"The 56th meeting of the GST Council, chaired by Union Finance Minister Smt Nirmala Sitharaman has now approved Next-Gen reforms." pib.gov.in. The Goods and Services Tax (GST) "is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax etc." cleartax.in. "The latest reforms mark a major simplification of the GST structure. The shift to a two-slab system of 5% and 18%, removing the earlier 12% and 28% rates, will make taxation more transparent and easier to follow. At the same time, a 40% on luxury and sin goods such as pan masala, tobacco, aerated drinks, high-end cars, yachts and private aircraft ensures fairness and revenue balance." These changes are "extremely consumer friendly." And there will not be a negative impact on tax collections because "it is expected that the consumption boom, fueled by price cuts arising from the GST reductions, will more than offset any decline in GST collections at an individual product level." However, further changes are needed because, "Petroleum products are still not included in the GST framework," wrote MS Mani. Prices may fall slightly but people have to earn to spend. "Professionals are caught in a salary spiral where costs keep climbing, pay moves slowly, and financial stability slips further away." On paper, "India is the world's fastest growing economy, with steady GDP growth, soaring corporate profits and a bullish stock market. But the paychecks of working middle-class Indians tell a very different story - one of financial strain, dwindling savings and rising dependence on debt." India Today. "In India, per capita debt of individual borrowers has grown from Rs 390,000 at the end of March 2023 to Rs 480,000 as of 31 March 2025." An increase of 23%, and "an increasing number of households are taking loans for consumption purposes: that is, to fund their everyday expenses such as shopping and bill payments," wrote M Suresh Babu. "In a blog, Marcellus Investment Managers' Saurabh Mukherjea warns that collapsing white-collar job creation, shrinking real wages, and the rise of AI are gutting the middle-class engine that has long powered India's growth story." BT. As for bringing petroleum under GST, it should be instantly rejected by the states because states can impose their own taxes on petrol, aircraft fuel and on alcohol. Which is why petrol prices vary from Rs 94.30 in Chandigarh to Rs 107.33 in Thiruvananthapuram. goodreturns.in. "The changes in the GST is a double dose of support and growth for the nation," said Prime Minister Narendra Modi. GST collections are shared equally with the states but cess and surcharges levied by the Centre are not. Lower GST collections will reduce revenue of the states but the Central government can plug its revenue loss by increasing cess and surcharges. "Data: Share of cesses and surcharges in Gross Tax Revenue falls to 14.5% in 2023-24, down from the high of 20.2% in 2020-21." factly.in. "Trinamool Congress Rajya Sabha leader Derek O'Brien... said the cess going to the Centre is 'slitting the throat of federalism', and noted that several states have voiced concern over the shrinking divisive pool of tax revenues." ET. Looting the states and conning the people. Higher consumption needs more money. And, money, as they say, doesn't grow on trees.