Finance Minister Nirmala Sitharaman said on Wednesday that the soon-to-be-implemented Goods and Services Tax (GST) redesign is likely to place Rs 2 lakh crore directly in the pockets of common people, which could spur discretionary expenditure.
Referring to the Outreach and Interaction Programme on Next Gen GST Reforms in Visakhapatnam, the Union Minister pointed out that 99% of articles that are now fetching 12% revenue for GST have been relocated to the 5% slab. She stated that this step would benefit significantly the middle class as well as economically weaker segments of society.
The move is aimed at lowering the tax load on consumers and increasing liquidity in the economy, Sitharaman said.
"The benefits provided to various industries in the country will be tenfold greater for the public with these next gen GST reforms," Sitharaman said.
The Finance Minister also emphasized that GST collections have grown from Rs 7.19 lakh crore in 2018 to Rs 22.08 lakh crore in 2025. She further stated that the taxpayer base has grown to 1.51 crore, as against 65 lakh earlier.
