Next-Gen GST Reforms to Boost Economy by Rs 2 Lakh Crore: FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Wednesday said that the next-generation GST reforms are expected to inject Rs 2 lakh crore into the economy, putting more money in the hands of consumers that would have otherwise gone as taxes.

Addressing the Outreach and Interaction Program on the reforms, Sitharaman highlighted significant changes in tax rates. “Following the reforms, 99 per cent of goods under the 12 per cent GST slab have moved to five per cent, and 90 per cent of items under the 28 per cent slab have shifted to 18 per cent,” she said.

The Finance Minister also noted that several companies, including FMCG giants, are voluntarily implementing rate cuts ahead of the official rollout on September 22 to pass benefits directly to consumers.

Sitharaman emphasized that the reforms aim to simplify the GST system, reduce the tax burden, and stimulate consumption, thereby boosting overall economic growth.