GST Reforms Expected to Boost Economy with Rs 2 Lakh Crore Injection

Union Finance Minister Nirmala Sitharaman announced a major economic boost expected from upcoming Goods and Services Tax (GST) reforms, projecting an infusion of Rs 2 lakh crore into the hands of citizens. The reforms, set to be implemented from September 22, aim to enhance domestic consumption by simplifying the existing GST structure from four slabs to two. This initiative is poised to benefit lower-income groups and micro, small, and medium enterprises (MSMEs), according to Sitharaman.

The Finance Minister shared these insights during the Tamil Nadu Foodgrains Merchants Association's 80th anniversary. By altering the GST framework, Sitharaman highlighted that product prices would drop, leading to increased production and employment, which in turn would broaden the tax base and increase government revenue through indirect taxes. This change is seen as a positive cycle for the Indian economy, indicating a substantial economic revival.

Emphasizing the transformation since GST's inception in 2017, where taxpayers increased from 65 lakh to 1.5 crore, Sitharaman reaffirmed Prime Minister Narendra Modi's commitment to using GST reforms to advantage lower-income families and businesses. Criticizing opposition views that have labeled GST as burdensome, she asserted the reform's role in expanding the tax base and questioned allegations of previous high tax levies, underscoring the NDA government's consumer-centric approach.

(With inputs from agencies.)