Finance Minister Nirmala Sitharaman made a key statement on GST reforms for the economy of the country. He said the recent GST changes would transfer around ₹ 2 lakh crore directly to the general public. This will benefit the middle class and the poor, which will allow them to increase their costs according to their needs.
During the “Next Generation GST Reforms” program in Visakhapatnam, Nirmala Sitharaman said that 99% of the items, which previously contributed 12% of the total GST revenue, would now be under a tax slab. This clearly means that ordinary people will pay less taxes on daily life, which will reduce the burden on their pockets. This is especially the news of relief for those who buy food and drinks every day.
Business will also have significant benefits
Nirmala Sitharaman said that this GST reform will benefit not only the ordinary consumers but also the industries and businesses. Simple tax rules will enable businesses to improve their functions. This will give new strength to many industries in the country and boost their development.
He also said that the tax collection under GST was ₹ 7.19 lakh crore in 2018, and by 2025 it is expected to increase to ₹ 22.08 lakh crore. In addition, the number of taxpayers has also increased from 6.5 million to 15.1 million. This clearly shows that more people are paying taxes and government income is also increasing.
The new rates will be implemented from September 22.
On August 15, Prime Minister Narendra Modi announced important GST reforms before the nation from the Red Fort. Subsequently, the GST Council approved the GST 2.0. This new system includes changes to the tax slab. Most daily essential items will now be under 5% tax slab, while others will be taxed 18%. The previous 12% and 28% slabs have been removed.
The essential food items like bread, milk and cheese will no longer be taxed, which will provide significant relief to the common man. These changes will go into effect from September 22. This will not only reduce costs for the common man, but also increase the flow of money in the national economy.
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