Nirmala Sitharaman Says GST Regime Has Boosted Citizens and States
Finance Minister highlights rate cuts, increased taxpayers, and simplified GST refunds as key reforms boosting public savings and state revenues
New Delhi, Sep 15: Union Finance Minister Nirmala Sitharaman on Sunday asserted that the GST regime has significantly benefitted both the public and State Governments, countering criticisms of the tax system.
Speaking at the Joint Conclave of Trade and Industries on ‘Tax Reforms for Rising Bharat’, Sitharaman highlighted the latest reforms in the GST structure, noting that 99% of goods previously taxed at 12% are now under the 5% bracket. “This is a reform that touches the lives of 140 crore people. The rate cut will reduce their expenses, resulting in savings,” she said, expressing confidence that businesses would pass on the benefits to consumers.
Since the GST’s launch in 2017, the number of taxpayers has grown from 65 lakh to 1.51 crore. Over 350 items have seen reduced GST rates, and the system has been simplified, the Finance Minister added.
Sitharaman also pointed to the growth in revenue: “Gross GST receipts, which were Rs 7.19 lakh crore then, have crossed Rs 22 lakh crore, averaging Rs 1.9–2 lakh crore per month, split 50:50 between the Union and the states.” She explained that with monthly collections of Rs 1.8 lakh crore, the Union government’s share is Rs 90,000 crore, with 41% allocated to the states.
Emphasizing reforms for essential items, she said, “All food items are now taxed at 5% or 0%, eliminating earlier classification problems. Similar simplifications have been applied across other goods.” Sitharaman also highlighted that personal income tax cuts, the new Income Tax Act, and GST reforms were implemented within eight months, with GST refunds streamlined for the benefit of poor and middle-class consumers.
Looking ahead, the Finance Minister indicated that the Insurance Amendment Bill, aimed at boosting FDI, may be introduced in the Winter Session of Parliament.
