GST reforms to inject Rs 2 lakh crore into economy: Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman has said that the next generation GST reforms will infuse Rs 2 lakh crore into the economy, which will leave people with more cash in hand that otherwise would have gone as taxes.
Sitharaman also said following the tax reforms, 99% of goods under 12% GST slab have moved to 5%. The rejig has resulted in 90% items under 28% tax slab slipping into the 18% bracket. He stated ‘With this New Gen Tax regime, with only two slabs (5% and 18%), Rs 2 lakh crore is injected into the economy. People will have cash on hand.’
Further, she said the GST revenues grew to Rs 22.08 lakh crore in FY 2024-25 from Rs 7.19 lakh crore in 2018 (FY 2017-18). According to her, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.
