Union Finance Minister Nirmala Sitharaman stated on Sunday that the GST reforms represent a significant achievement for all citizens of India. Considering the various festivals celebrated across states, the implementation of these reforms is set to occur well before Prime Minister Narendra Modi’s directive to launch them ahead of the Deepavali festival, as mentioned during her speech at a joint conclave organized by the Chennai Citizens Forum on ‘Tax Reforms for Rising Bharat.’ Sitharaman emphasized that the benefits of the Goods and Services Tax would be felt throughout the day, from morning until night. “GST is now making its presence felt in every corner of daily life,” she remarked, noting its impact on everything from morning tea to dinner.
She outlined key initiatives, revealing that 99 percent of goods previously taxed at 12 percent under GST will now see a reduced rate of 5 percent, with the new reforms taking effect on September 22. Sitharaman pointed out that the GST Council has lowered tax rates for over 350 items and simplified the tax structure by eliminating the 28 percent slab, which previously applied to various products. She also highlighted the expansion of the tax base, noting that prior to the introduction of GST in 2017, only 66 lakh traders filed taxes, whereas today, 1.5 crore businesses are participating in the GST framework.
Despite Opposition leader Rahul Gandhi’s characterization of GST as a ‘Gabbar Singh Tax,’ the number of compliant businesses has risen significantly, leading to increased government revenue. In 2017, the tax collected was Rs 7.19 lakh crore, whereas the current Gross GST collection has surpassed Rs 22 lakh crore, with an average monthly revenue of Rs 1.8 lakh to 2 lakh crore being generated for both Central and state governments. This revenue is split evenly, providing Rs 90,000 crore each to the states and the Centre, with approximately 41 percent of the Centre’s share returned to the states. This illustrates the advantages that both the public and state governments stand to gain through the effective implementation of GST.
