Economy: GST reforms to inject Rs. 2 lakh crores in Indian economy, says FM
Virendra Pandit
New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday said the Next Generation GST reforms, being rolled out on September 22, the first day of the Navratra Festival, will infuse Rs. 2 lakh crores into the Indian economy, leaving the people with more cash on hand, which would otherwise have gone to pay taxes.
Addressing the “Outreach and Interaction Program on Next Gen GST Reforms” at Visakhapatnam, Andhra Pradesh, she also said, following the latest tax reforms, 99 percent of goods under the 12 percent GST slab have moved to the five percent slab. The rejig has also resulted in 90 percent of items under the 28 percent tax slab slipping into the 18 percent bracket.
These GST reforms are a major step for the Indian economy and will benefit the middle class.
“With this New Gen Tax regime, with only two slabs (5 percent and 18 percent), Rs. 2 lakh crores will be injected into the economy. People will have more cash on hand,” she said.
The GST revenues grew to Rs. 22.08 lakh crore in 2025 from Rs. 7.19 lakh crore in 2018 when it was introduced.
According to her, the taxpayer’s number grew from 65 lakh earlier to 1.51 crores now.
Sitharaman will also attend a Confederation of Indian Industry (CII) Business Summit on Global Capability Centres (GCCs) at Visakhapatnam later in the day.
The FM said the benefits of the GST reforms will be 10 times greater than the incentives given to various industries in the country.
The CII Business Summit will focus on emerging trends, criteria for decision makers when selecting a city or state, and state policy formulation in attracting the GCCs.
