‘Ek teer, kai nishaan’: Kotak AMC’s Nilesh Shah says ₹48,000 cr GST lower offsets US tariff affect

GST reform isn’t simply tax coverage — it’s a multi-pronged financial catalyst, says Kotak Mahindra AMC MD Nilesh Shah, who hailed India’s newest GST rationalization as a well timed Diwali present that delivers “ek teer, kai nishaan.”

Shah took to X to endorse the GST Council’s resolution to consolidate tax slabs and lower charges on small automobiles and two-wheelers, calling it a transfer that lowers inflation, boosts consumption, and helps development — all whereas sustaining fiscal self-discipline.

“This Diwali present of ₹48,000 crore is fiscally manageable at ~7 bps,” Shah wrote, referencing the restricted budgetary affect of the tax cuts introduced on September 1.

Along with spurring shopper sentiment and bettering ease of doing enterprise, Shah argued the rationalization helps India take up exterior shocks: “Rationalisation of GST will partially assist offset the opposed affect of US tariffs within the quarters to return with elevated consumption.”

He additionally praised the pace with which the GST Council acted. “Finishing two days [of] GST council assembly in someday does present the urgency,” he famous.

Nonetheless, Shah didn’t ignore the dangers. He emphasised the necessity for strict motion in opposition to tax fraud and ongoing enhancements in GST administration. “Leakages and fraud of GST must be handled [an] iron hand,” he warned, including {that a} suggestions loop for course of enchancment should stay lively.

In a pointy critique of monetary habits, Shah additionally highlighted a extra insidious financial threat: “Financial savings misallocation taking place by F&O hypothesis and double-your-money Ponzi schemes is making Indians fast cash addicts. [It] prices greater than four-five instances the GST present.”