GST reforms to inject Rs 2 lakh crore into economy, says Finance Minister Nirmala Sitharaman

Visakhapatnam, Sep 17: Union Finance Minister Nirmala Sitharaman on Wednesday said the next generation GST reforms will infuse Rs 2 lakh crore into the economy, which will leave people with more cash in hand that otherwise would have gone as taxes.

Addressing the Outreach and Interaction Program on Next Gen GST Reforms, she also said, following the tax reforms, 99 per cent of goods under 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.

"With this New Gen Tax regime, with only two slabs (5 per cent and 18 per cent), Rs 2 lakh crore is injected into the economy. People will have cash on hand," she said.

The minister said the GST revenues grew to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in 2028 when it was introduced.

According to her, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.