SBI Research sees states gaining ₹1.43 lakh crore despite GST cess expiry
SBI Research projects a ₹1.43 lakh crore net gain for states in FY27 as higher GST collections and basic excise sharing offset the end of compensation-cess transfers. Higher GST on specified demerit goods is expected to support state receipts.
SBI Research says states will gain ₹1.43 lakh crore in FY27 despite the GST compensation cess ending, as higher GST collections and basic excise-duty sharing outweigh reduced cess transfers. The revised demerit-goods GST rate is expected to lift state tax receipts.
Why this matters
The outlook extends SBI Research’s recent fiscal and retail-policy watch, following its warning that a 15% gold duty could raise domestic prices, encourage grey-market leakage and squeeze jewellery sourcing.
Retail-company signals are accelerating, up 1,091,700% QoQ.