Union Finance Minister Nirmala Sitharaman stated on Wednesday that the next generation of GST reforms will help the economy by injecting Rs 2 lakh crore, giving people more money that would have been spent on taxes otherwise.
Key Highlights
- GST reforms to two slabs of 5% and 18% projected to inject ₹2 lakh crore into economy.
- GST revenues hit ₹22.08 lakh crore in 2024-25; taxpayer base grew from 65 lakh to 1.51 crore.
Speaking at the Next Gen GST Reforms Outreach and Interaction Program, she added that 99 percent of goods under the 12 percent GST slab have now moved to the 5 percent GST slab as a result of the tax reforms. 90% of items under the 28% tax slab now fall into the 18% bracket as a result of the reorganization.
The minister emphasized that the New Generation Tax regime, which only has two tax slabs of 5% and 18%, has contributed almost ₹2 lakh crore to the economy, guaranteeing that people have more money in their pockets. She pointed out that the GST's revenues increased dramatically, from ₹7.19 lakh crore at its start in 2018 to ₹22.08 lakh crore by 2025.
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As a result of improved compliance, wider participation, and the expansion of India's tax base, the number of taxpayers increased significantly, from 65 lakh at the time of introduction to 1.51 crore in 2025.
