Maharashtra is set to lose between Rs 7,000 and Rs 10,000 crore under the new Goods and Services Tax (GST) slab structure that came into effect on Monday. Despite the looming shortfall, the state government has not yet decided to demand compensation, unlike opposition-ruled states that have already raised the issue. BJP-ruled states, however, have chosen to align with the Centre’s decision without protest.
According to trade and government sources, the revenue loss could exceed ₹10,000 crore, but the BJP has moved quickly to convert the GST cuts into a political opportunity. The party has instructed trade bodies, shops, and malls to highlight consumer savings by displaying the revised GST rates alongside the old ones. Advertisements are also being rolled out to underline the benefits to the end consumer.
The All India Organisation of Chemists and Druggists’ Maharashtra wing has already begun displaying the revised tax slabs at medical shops. Medicines that earlier attracted 12% GST now fall under 5%, reducing MRPs by 6.25%. Products that were taxed at 18% and shifted to 5% will see an 11.02% drop in MRPs. Items previously taxed at 5% and now exempted will become cheaper by 4.77%, while goods that moved from 12% to zero tax will save 10.72% on MRPs.
The chemists’ body has also decided to clear its old stock, earlier purchased under 12% and 18% GST, by charging just 5%. With the BJP planning an extensive campaign to amplify these consumer savings, political observers say the party is keen to ensure the GST restructuring translates into electoral advantage in Maharashtra.
