Wed Sep 17 15:50:00 UTC 2025: **FOR IMMEDIATE RELEASE**

**GST Reforms to Inject ₹2 Lakh Crore into Citizens’ Pockets, Says Finance Minister**

**Visakhapatnam, India – September 17, 2025** – In a significant move aimed at easing the tax burden on consumers and boosting the Indian economy, Finance Minister Nirmala Sitharaman announced sweeping GST reforms today, projecting an additional ₹2 lakh crore in disposable income for the average citizen.

Speaking at an outreach program in Visakhapatnam, Ms. Sitharaman outlined the key features of “GST 2.0,” a simplified and streamlined version of the Goods and Services Tax, set to take effect on September 22nd. The reforms include a significant reduction in the number of tax slabs, consolidating the existing five tiers (0%, 5%, 12%, 18%, and 28%) into just two: 5% for essential consumer goods and 18% for other items.

“The Central Government has come up with new reforms in the name of GST 2.0 to further simplify the current complex GST system,” Ms. Sitharaman stated.

The reform prioritizes affordability, with taxes on everyday necessities like soaps and toothpaste slashed to 5% or even eliminated entirely. Relief is also on the way for the middle class, as rates on two-wheelers, cars, televisions, and cement fall from 28% to 18%. Critical medicines will see a dramatic reduction from 12% to either 5% or 0%.

According to Ms. Sitharaman, 99% of goods previously taxed at 12% will now fall under the 5% bracket, benefiting the middle class and low-income populations across the country. She also highlighted the critical role of GST revenue in funding essential welfare programs and infrastructure development, citing the increase from ₹7.19 lakh crore in 2018 to ₹22.08 lakh crore in 2025. Furthermore, the taxpayer base has more than doubled, expanding from 65 lakh to 1.51 crore.

The government anticipates that these reforms will stimulate consumer spending and drive economic growth by making goods more affordable. Ms. Sitharaman emphasized that these latest changes represent the most significant revision to the GST system since its initial implementation on July 1, 2017, with a strong focus on improving the lives of ordinary citizens.

**###**

Read More