The GST Council on Wednesday announced no GST cess except on tobacco, which will continue until loans given to states during Covid are repaid. The government expects to clear these loans by November 2025. According to government estimates, the removal of cess and the new tax structure will cost the Centre and states Rs 48,000 crore over a 12-month period. Analysts, however, say the actual impact could be higher. According to IDFC FIRST Bank Research, after adjusting for consumption patterns and cess transfers, the net revenue loss could reach Rs 95,000 crore, or 0.3% of GDP. Can India afford it, that’s the big question? Net cost to centre and states estimated at Rs 95,000 crore IDFC First Bank estimates that the net revenue loss could reach Rs 95,000 crore. “As per our estimate, net cost to centre plus states after assuming surplus cess collection in GST compensation account is utilized, is coming at Rs 95,000 crore (0.3% of GDP),” IDFC First bank noted.