Next Gen GST Reforms to Boost Indian Economy
Union Finance Minister Nirmala Sitharaman announced significant GST reforms. These will inject Rs 2 lakh crore into the economy, providing more disposable income to consumers. The reforms simplify GST structures to two slabs, leading to a substantial shift of goods to lower tax brackets, enhancing economic liquidity.
- Country:
- India
In a bold move to rejuvenate the Indian economy, Union Finance Minister Nirmala Sitharaman revealed upcoming GST reforms designed to streamline tax structures and increase economic liquidity. By distilling GST into just two fundamental slabs, the government will reallocate Rs 2 lakh crore back into the economy, allowing citizens more discretionary spending power.
Speaking at the Outreach and Interaction Program on Next Gen GST Reforms, Sitharaman noted a significant reclassification of goods, with 99% moving from the 12% GST slab to just 5%, and 90% of items under the initial 28% slab now benefiting from the 18% bracket. This strategic shift aims to ease the financial burden on consumers and stimulate market activity.
The Finance Minister proudly highlighted the GST revenue growth from Rs 7.19 lakh crore in 2018 to an impressive Rs 22.08 lakh crore in 2025. The number of taxpayers has also more than doubled, underscoring the reform's far-reaching impact on the Indian tax landscape.
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