New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday announced that the next generation of GST reforms will inject ₹2 lakh crore into the economy, leaving citizens with more disposable income that would otherwise have gone as taxes.
Speaking at the Outreach and Interaction Programme on Next Gen GST Reforms, she said the restructuring of tax slabs has significantly eased the burden on consumers. Nearly 99 per cent of goods under the 12 per cent slab have been moved to the 5 per cent category, while 90 per cent of items previously taxed at 28 per cent have shifted to 18 per cent.
“With this new regime, where only two slabs remain—5 per cent and 18 per cent—₹2 lakh crore will be injected into the economy. People will have cash on hand,” she said.
The finance minister also highlighted the sharp growth in GST revenues, which surged from ₹7.19 lakh crore in 2018, the year the tax was introduced, to ₹22.08 lakh crore in 2025. The taxpayer base has also more than doubled, rising from 65 lakh to 1.51 crore.
