New Delhi, Sept. 5 -- The revenue loss of the central government due to the recent GST rate reduction will be around Rs 3,700 crore in FY26, as higher growth and a boost in consumption have reduced the impact on revenues, according to a report by the State Bank of India (SBI).

The report highlighted the data that by taking the baseline of FY24, the government had estimated a gross loss of Rs 93,000 crore due to GST rate cuts.

However, after adjusting for extra revenue collection, the net loss stood at Rs 48,000 crore.

For FY26, SBI estimates the gross revenue loss to be higher at Rs 1.11 lakh crore. But with strong consumption trends and higher tax revenue, the net loss is projected to decline sharply to Rs 25,794 crore for the full FY...