Union Finance Minister Nirmala Sitharaman said that the recent GST reforms will put more money in people’s hands.The GST system has been simplified. Earlier, there were four tax slabs – 5%, 12%, 18%, and 28%. Now, only two remain – 5% and 18%. The 12% and 28% slabs have been removed. The changes will take effect from September 22.
Speaking at an event in Visakhapatnam, Nirmala Sitharaman said 99% of goods that were earlier under the 12% slab have been moved to 5%. Similarly, 90% of items under the 28% slab have been shifted to 18%. Many companies have already started passing on the benefits to consumers.
She said the reform will inject ₹2 lakh crore into the Indian economy. This will increase spending power for people.
She also noted that GST collections have grown sharply. Revenue from GST was ₹7.19 lakh crore in 2018. It has now risen to ₹22.08 lakh crore in 2025. The number of taxpayers has also gone up from 65 lakh to 1.51 crore.
Criticising the previous Congress-led UPA government, she said the earlier tax system felt like “tax terrorism.” The UPA did not make serious efforts to bring in GST or consult state governments during its 10 years in power, she added.