Finance Minister Nirmala SItharaman on Wednesday said that the Goods and Services Tax (GST) rejig is set to bring to Rs 2 lakh crore in hands of the common people, signalling at a possibility of higher discretionary spending.
Speaking at the Outreach and Interaction Program on Next Gen GST Reforms in Visakhapatnam, the Union Minister said that 99% of the goods that contribute to 12% of the revenue have come under the 5% GST slab, which will be very beneficial for the middle class and the poor.
According to the minister, the GST Council’s decision is aimed at easing the tax burden on consumers and improving liquidity in the economy.
"The benefits provided to various industries in the country will be tenfold greater for the public with these next gen GST reforms," Sitharaman said.
Sitharaman also said that the GST revenues grow from from Rs 7.19 lakh crore in 2018 to Rs 22.08 lakh crore in 2025. She further noted that the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.
The great Indian tax makeover
Following income tax relief in Budget 2025, the Modi government announced GST 2.0, starting September 22, where the slab structure will change - 5 per cent for common use goods and 18 per cent for everything else.
The existing slab of 12 and 28 per cent rates have been done away with.
In the revamped GST structure, most daily food and grocery items will fall under the 5 per cent GST slab with bread, milk and paneer attracting no tax at all.
Earlier, Sitharaman had said the reform, which is the single biggest since the 2017 rollout of the one-nation, one tax regime, has been carried out with a focus on the common man.
Every tax on daily use items has gone through a rigorous review and in most cases the rates have come down drastically.
The significant relief in income tax that she gave in her Budget in February coupled with the GST rejig is set to allow for greater spending, making things more affordable as people are left with more money in hand.
Speaking at the Outreach and Interaction Program on Next Gen GST Reforms in Visakhapatnam, the Union Minister said that 99% of the goods that contribute to 12% of the revenue have come under the 5% GST slab, which will be very beneficial for the middle class and the poor.
According to the minister, the GST Council’s decision is aimed at easing the tax burden on consumers and improving liquidity in the economy.
"The benefits provided to various industries in the country will be tenfold greater for the public with these next gen GST reforms," Sitharaman said.
Sitharaman also said that the GST revenues grow from from Rs 7.19 lakh crore in 2018 to Rs 22.08 lakh crore in 2025. She further noted that the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.
The great Indian tax makeover
Following income tax relief in Budget 2025, the Modi government announced GST 2.0, starting September 22, where the slab structure will change - 5 per cent for common use goods and 18 per cent for everything else.
The existing slab of 12 and 28 per cent rates have been done away with.
In the revamped GST structure, most daily food and grocery items will fall under the 5 per cent GST slab with bread, milk and paneer attracting no tax at all.
Earlier, Sitharaman had said the reform, which is the single biggest since the 2017 rollout of the one-nation, one tax regime, has been carried out with a focus on the common man.
Every tax on daily use items has gone through a rigorous review and in most cases the rates have come down drastically.
The significant relief in income tax that she gave in her Budget in February coupled with the GST rejig is set to allow for greater spending, making things more affordable as people are left with more money in hand.
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