Union Finance Minister Nirmala Sitharaman on Wednesday said the next generation GST reforms will infuse Rs 2 lakh crore into the economy, which will leave people with more cash in hand that otherwise would have gone as taxes.
Addressing the Outreach and Interaction Program on Next Gen GST Reforms, she also said, following the tax reforms, 99% of goods under 12% GST slab have moved to 5%. The rejig has resulted in 90% items under 28% tax slab slipping into the 18% bracket.
"With this New Gen Tax regime, with only two slabs (5% and 18% ), Rs 2 lakh crore is injected into the economy. People will have cash on hand,' she said.
The minister said the GST revenues grew to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in 2018 (FY 2017-18).
According to her, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.
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