Sat Sep 20 04:20:42 UTC 2025: Okay, here’s a summary of the text and a rewritten news article based on it:

**Summary:**

Union Finance Minister Nirmala Sitharaman announced that upcoming GST reforms, effective September 22, 2025, are projected to put ₹2 lakh crore back into the hands of the people, boosting domestic consumption. She emphasized that Prime Minister Modi intends these reforms to benefit the poor, middle class, and MSMEs. Speaking at the Tamil Nadu Foodgrains Merchants Association’s anniversary, Sitharaman highlighted the simplification of the GST structure from four slabs to two. She rebutted criticism of the GST system, noting its positive impact on expanding the tax base since its introduction in 2017. She defended against the claims of overly high tax rates, stating the government’s dedication to benefiting the citizens.

**News Article:**

**GST Reforms to Inject ₹2 Lakh Crore into Indian Economy, Finance Minister Says**

**Madurai, Tamil Nadu – September 20, 2025** – Sweeping Goods and Services Tax (GST) reforms, slated to take effect on September 22nd, are projected to inject ₹2 lakh crore into the Indian economy, boosting domestic consumption, according to Union Finance Minister Nirmala Sitharaman. Speaking at the 80th anniversary of the Tamil Nadu Foodgrains Merchants Association Limited in Madurai on Friday, September 19th, Sitharaman outlined the key changes, including a simplification of the GST structure from four slabs to two.

“With the proposed GST reforms, there will be an increase in consumption in the domestic market. The Finance Ministry does not receive the ₹2 lakh crore as taxes from the public, but it goes back into the economy aiding domestic consumption,” she stated. She also noted, “because of the two-slab structure, the price of a product which a customer normally buys gets reduced.”

The Finance Minister emphasized Prime Minister Narendra Modi’s commitment to ensuring the reforms primarily benefit the poor, middle-class families, and micro, small, and medium enterprises (MSMEs). She stated that the increased consumption from the public will increase demand, which in turn creates production and more jobs. And with more jobs, there is a wider tax base.

Sitharaman also addressed criticism of the GST system, pointing to its success in expanding the tax base from 65 lakh entrepreneurs before its implementation in 2017 to 1.5 crore currently. She directly refuted the Congress leader Rahul Gandhi’s previous assertion regarding the system as a “Gabbar Singh Tax,” stating that it has only increased the tax base to 1.5 crore.

She also tackled recent claims that the government had been levying higher taxes prior to the reforms, stating, “Neither the NDA government nor the Prime Minister is inclined to do that.”

The new GST reforms represent a significant shift in the Indian taxation landscape and are expected to have a widespread impact on the economy. The Finance Ministry anticipates increased consumer spending and economic growth as a result.

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