GST reforms injected Rs 2 lakh crore into economy: Finance Minister Nirmala Sitharaman

VISHAKAPATNAM: Union Finance Minister Nirmala Sitharaman on Wednesday said the Next Gen GST reforms have infused Rs 2 lakh crore into the economy, which has left people with more cash on hand, which otherwise would have gone to taxes. Addressing the Outreach and Interaction Program on Next Gen GST Reforms, she also said, following the tax reforms, 99 percent of goods under 12 percent GST slab have moved to five percent. The rejig has resulted in 90 percent items under 28 percent tax slab slipping into the 18 percent bracket. With this New Gen Tax regime, with only two slabs (5 percent and 18 percent), Rs 2 lakh crore is injected into the economy. People will have cash on hand, she said. The miniser said the GST revenues grew to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in 2018 when it was introduced. According to her, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh. What is the real fiscal cost of GST reforms?