GST rate cuts: FM says reforms to inject Rs 2L cr; claims 'people will have cash in hand'

GST complaint cuts impact: Finance Minister Nirmala Sitharaman connected Wednesday said that GST complaint cuts announced by the Modi government, effectual September 22, volition inject Rs 2 lakh crore into the economy."With this caller gen taxation regime, with lone 2 slabs (5 per cent and 18 per cent), Rs 2 lakh crore is injected into the economy. People volition person currency successful hand," she said according to a PTI report.During the Outreach and Interaction Program connected Next Gen GST Reforms, she highlighted that post-tax reforms, 99 per cent of items antecedently nether 12 per cent GST person shifted to 5 per cent. Additionally, 90 per cent of items formerly taxed astatine 28 per cent person moved to the 18 per cent category.She noted that galore companies, including salient FMCG organisations, are willingly reducing rates and transferring benefits to consumers up of September 22, erstwhile the caller GST authorities takes effect.Also Read | New GST rates database 2025 successful India: Full broad database of items with revised GST rates - 5%, 18%, 0% & 40% effectual September 22According to Sitharaman, the NDA authorities considered 5 indispensable criteria earlier implementing complaint changes: providing alleviation to mediocre and middle-class citizens, addressing middle-class aspirations, supporting farmers, favouring MSMEs, and focusing connected sectors important for employment procreation and export potential.

The GST gross saw important growth, reaching Rs 22.08 lakh crore successful 2025, compared to Rs 7.19 lakh crore successful 2018 (FY 2017-18), the curate said.She noted a important summation successful payer registration, with numbers rising to 1.51 crore from the erstwhile 65 lakh.Sitharaman emphasised that the GST Council stands arsenic the sole law assemblage established post-independence, exemplifying cooperative federalism.She criticised the erstwhile UPA administration's taxation framework, labelling it problematic, whilst explaining the extended enactment undertaken to instrumentality GST arsenic a unified nationalist taxation system."The UPA authorities went for 10 years. You could not travel with GST. You could not person the states astir GST… I could person fixed a harsh governmental reply. But not today," she stated.The simplified GST structure, featuring reduced complaint slabs from 4 (5, 12, 18 and 28) to 2 (5 and 18 per cent), volition beryllium implemented from September 22.