Union Finance Minister Nirmala Sitharaman said on Sunday that the Goods and Services Tax (GST) has benefitted both the people and State governments.
Speaking at a conclave of trade and industry bodies in Chennai, she explained how GST reforms have reduced costs. She pointed out that 99% of goods that were earlier taxed at 12% GST now come under the 5% GST bracket.
“This reform touches the lives of all 140 crore people,” she said. “The GST cut of 10–13% helps families spend less. The money saved can be used for other needs.” She urged companies to pass these benefits on to consumers.
The Minister also shared data on GST growth. When GST started in 2017, there were 65 lakh taxpayers. Today, the number has increased to 1.51 crore. In 2017, gross GST collections stood at ₹7.19 lakh crore. Now, they have grown to ₹22 lakh crore.
On average, the government collects between ₹1.9 and ₹2 lakh crore every month through GST. This money is shared equally between the Centre and the States.
“If ₹1.8 lakh crore is collected in a month, ₹90,000 crore goes to the States and ₹90,000 crore to the Centre,” she explained. “From the Centre’s share, 41% is again given to the States.”
Sitharaman said the rising collections show that businesses are following the system and tax compliance has improved. She added that technology has made filing returns easier for traders and companies.
She highlighted that GST has replaced multiple taxes, making it simpler for businesses to operate across different States. “A single tax system has cut down on confusion and paperwork,” she noted.
The Finance Minister also assured industry bodies that the government will keep reviewing GST slabs and procedures to support growth. She said reforms will continue to ensure both people and States gain from the system.