New Delhi, Sept. 20 -- While the government has estimated an annual revenue loss of about Rs 480 billion, due to the reduced Goods and Services Tax (GST) rates on various products, a recent report by Systematix Research has pegged the figure much higher, at nearly Rs 1.2 trillion.

The report highlighted that lower tax revenues may squeeze the government's capacity for capital expenditure. A slowdown in public infrastructure spending would have a direct bearing on the banking sector by limiting demand for project and infra credit. "A huge revenue loss could constrain government's capital expenditure spend, squeezing the credit demand from the infrastructure sector," the report stated.

Indian exporters currently face double tariffs of 25 ...