New Delhi, Sept. 5 -- Chief Economic Advisor (CEA) V Anantha Nageswaran feels that the Centre's goods and services tax (GST) reforms will boost consumption in India. The GST Council on September 3 announced that it has approved the government's GST reform proposal, which includes modifying the current four tax slabs, into a two-tier system with a special rate on luxury items and sin goods.

Speaking at an event by The Indian Express in Mumbai, Nageswaran noted that while the revised GST may not completely compensate for hiked 50 per cent tariffs imposed by United States President Donald Trump, they "will definitely offset and compensate" for the losses.

On states expressing concern that the GST rate cuts would impact their revenues and l...