GST reforms to cut tax burden, Benefit common man: Sitharaman

Union Finance Minister Nirmala Sitharaman on Wednesday said the next generation GST reforms will infuse Rs 2 lakh crore into the economy, leaving people with more cash in hand that otherwise would have gone as taxes. Addressing the Outreach and Interaction Program on Next Gen GST Reforms in Vishakhapatnam, she also said, following the tax reforms, 99 per cent of goods under the 12 per cent GST slab have moved to five per cent. The rejig has resulted in 90 per cent items under 28 per cent tax slab slipping into the 18 per cent bracket.

She said several companies, including some FMCG giants, are voluntarily coming forward to give rate cuts and pass on the benefit to consumers even before September 22, the implementation date for the new GST regime.The Union Minister said, MSME and job-creating sectors will also benefit through reduced costs, providing enhanced opportunities. Sitharaman added that the GST reforms will enhance the purchasing power and contribute to the savings of the common man across the country.

Emphasising the changes brought in, she said, it reinforces Prime Minister Narendra Modi’s vision and dream of achieving Viksit Bharat and Atma Nirbhar Bharat. Effective from September 22, 2025, the GST reforms simplify the tax structure and support economic growth. The Finance Minister expressed confidence that the historic tax overhaul will empower every citizen and strengthen India’s economy. The event in Visakhapatnam focused on creating awareness and interaction around these landmark reforms.