Visakhapatnam: Union Finance Minister Nirmala Sitharaman on Wednesday stated that the Next Gen GST reforms have injected Rs 2 lakh crore into the economy, leaving people with more disposable cash that would have otherwise gone toward taxes.
Speaking at the Outreach and Interaction Program on Next Gen GST Reforms, she highlighted that following the tax overhaul, 99% of goods previously under the 12% GST slab have moved to 5%, while 90% of items in the 28% slab have shifted to 18%.
“With this New Gen Tax regime, now streamlined into just two slabs—5% and 18%—Rs 2 lakh crore has been pumped into the economy, ensuring people retain more cash,” she said.
The minister further noted that GST revenues have grown from Rs 7.19 lakh crore in 2018, when the tax was first implemented, to Rs 22.08 lakh crore in 2025. The number of taxpayers has also risen from 65 lakh to 1.51 crore.
