After the change in GST, where many everyday things have become cheap, the countrymen are also happy. In the new system to implement from 22 September, 2025, four tax slabs will be reduced to only two, 5% and 18%, while a special rate of 40% has also been fixed for luxury and harmful items. So will it be the last episode of the system by changing it or should we expect more wonders in the future? India’s Finance Minister Nirmala Sitharaman has made it clear that the major chapters of tax reforms are now almost complete.
Nirmala Sitharaman says that with the implementation of the new structure of GST 2.0 i.e. Goods and Services Tax, major tax reforms have been completed. Within eight months, the government passed a new income tax code, provided direct tax relief of Rs 12 lakh crore in the budget and has now improved GST on a large scale.
Why is GST 2.0 special? According to the Finance Minister, GST 2.0 is not only about reducing or increasing tax rates, but it is associated with the daily life of common people. GST applies to everything, whether it is kitchen goods, domestic needs, vehicles or services. This is the reason why 140 million people have a direct impact of change in tax rates. Sitharaman believes that this improvement will not only increase consumption, but will also have a positive impact on the economic activities and development of the country. He said that the direct effect of rate cuts will be seen in festivals and weddings, when shopping is at its peak.
What will be the effect on revenue? The Revenue Secretary had speculated that the GST rate cuts would have an impact of about ₹ 48,000 crore. However, the Finance Minister says the figure is based on the data of the previous financial year. The real effect will come only when people return to the market in large numbers. He said that the way there was a reving shopping after Kovid, similarly if people shop fiercely after tax cuts, then these statistics can be changed.
American tariff crisis and India’s preparation: 50% tariff imposed by the US is another major challenge before India. The Finance Minister said that it is difficult to say how long the tariff will remain in force or whether there will be any agreement. However, he clarified that the government is working on a special package for the affected areas and relief may be announced soon. Textile and other export -based industries, especially, can benefit from this package.
Focus on poor and farmers: The Finance Minister said that the most important guide principle of changes in GST rates is to provide relief to the poor, middle class and farmers. Taxes have been reduced on daily use items, protein -rich foods, farmers related items and products required for MSME sector.
Role of GST Council: Nirmala Sitharaman said that the GST Council has always taken decisions by consensus. This time too, the states kept their concerns firmly, but in the end everyone agreed and agreed. He said that the specialty of the GST Council is that no matter how sharp debate, the atmosphere is always cordial.
Question on investment and rupee: On capital outflow and weakness of rupee, the Finance Minister said that it is just a matter of dollar and there is no special reason for concern given the global situation. India’s investment attraction is far better than before and the government will continue to further the agenda of reforms.