Wed Sep 17 08:36:01 UTC 2025: **Summary:**

Finance Minister Nirmala Sitharaman announced significant GST reforms (GST 2.0) in Visakhapatnam, effective September 22, 2025. The reforms aim to simplify the GST system, reduce the tax burden on consumers, and boost the economy. Key changes include reducing the number of tax slabs from five to two (5% and 18%), lowering taxes on essential goods and services, and benefitting the middle class and the poor. The government expects these changes to increase disposable income, stimulate spending, and contribute to infrastructure development.

**News Article:**

**GST Overhaul to Put ₹2 Lakh Crore Back in Hands of Citizens, Says Finance Minister**

**Visakhapatnam, September 17, 2025** – In a move hailed as the biggest GST reform since its inception in 2017, Finance Minister Nirmala Sitharaman announced a sweeping overhaul of the Goods and Services Tax (GST) system, dubbed “GST 2.0,” promising to inject ₹2 lakh crore back into the pockets of the average Indian citizen.

Speaking at an outreach program in Visakhapatnam, Ms. Sitharaman stated that the GST Council’s decision is designed to simplify the tax system, reduce the tax burden on consumers, and improve liquidity in the economy. The reforms, set to take effect on September 22nd, 2025, will drastically reduce the number of GST slabs from the current five (0%, 5%, 12%, 18%, and 28%) to just two: 5% for common consumer goods and 18% for other items.

“We have rigorously reviewed every tax on daily necessities, and in many cases, rates have been significantly reduced,” Ms. Sitharaman emphasized. The changes include slashing taxes on household essentials like soaps and toothpaste to 5% or nil. Furthermore, life-saving drugs will see a tax reduction from 12% to either nil or 5%. Middle-class consumers will also benefit from a reduction in taxes on two-wheelers, cars, TVs, and cement, which will move from the 28% bracket to the 18% bracket.

The Finance Minister also highlighted that 99% of goods previously taxed at 12% will now fall under the 5% GST slab. Ms. Sitharaman further pointed out the positive impact of GST on government revenue, noting that it has increased from ₹7.19 lakh crore in 2018 to ₹22.08 lakh crore in 2025, alongside a surge in the number of taxpayers from 65 lakh to 1.51 crore.

The Union Government anticipates that the new reforms will encourage spending and make goods and services more affordable. Ms. Sitharaman reiterated that the reforms prioritize the common man and will fuel the nation’s infrastructure development and welfare schemes.

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