GST Benefiting Citizens and States: Finance Minister Sitharaman

Quick Summary:

• Event: Union Finance minister Nirmala Sitharaman addressed a joint conclave of Trade and industries Association in Chennai on September 14, 2025, discussing ‘Tax Reforms for Rising Bharat’.
• GST Reform Updates:

– GST brackets have been revised; 99% of goods from the 12% bracket now fall under the 5% GST bracket.
– Cuts in GST rates range between 10-13%, aimed at reducing expenses for citizens.

• Economic Data:

– GST taxpayers increased from 65 lakh in 2017 to over 1.51 crore by September 2025.
– gross annual GST receipts climbed from ₹7.19 lakh crore (2017) to ₹22 lakh crore currently.

• Revenue Sharing Breakdown:

– Monthly collections average ₹1.9-2 lakh crore,split equally between the Center and States with further allocation (41%) to States from the Centre’s share.

• Key Improvements Under GST reforms (GST Version ‘2.0’):

– Simplification of registration process enabling completion within three days.
– Reduction of GST rates across over 350 items.
– Classification issues resolved by standardizing tax categories for specific goods like food items at uniform rates (0% or +5%).
– Refund procedures simplified alongside new efforts supportive of MSME raw material sourcing & logistics reduction sectors flagged benefitted boosting*economy backdrop

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