Visakhapatnam, Sep 17: Union Finance Minister Nirmala Sitharaman on Wednesday stated that the Next Gen GST reforms have pumped Rs 2 lakh crore into the Indian economy, giving citizens more disposable cash that would otherwise have gone to taxes.
Speaking at the Outreach and Interaction Program on Next Gen GST Reforms, she explained that 99% of goods previously under the 12% GST slab have now shifted to 5%, while 90% of items under the 28% slab have moved to 18%.
“With this new GST regime, operating with just two slabs 5% and 18% Rs 2 lakh crore is injected into the economy, leaving more cash in people’s hands,” the minister said.
She also highlighted the growth in GST revenues, which rose to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore when the tax was first introduced in 2008. The number of registered taxpayers has also grown substantially, reaching 1.51 crore from 65 lakh earlier.
These reforms, she noted, aim to simplify taxation, improve compliance, and stimulate economic activity across the country.