Pulses and salt now under 5% GST, says Nirmala Sitaraman

In a recent address in Visakhapatnam, Union Finance Minister Nirmala Sitharaman shed light on the success and future of GST reforms. Speaking at an awareness program, she emphasized the widespread impact of GST, stating that unlike other taxes that affect only a few sections, GST will affect 140 crore people across the country.

A major focus of her speech was the upcoming GST 2.0 regime, which is set to be implemented from the start of Navratri. The minister noted that this new regime is already creating a buzz, with the automobile industry announcing special offers in anticipation. She assured the public that the new decisions under this regime are being made with a primary focus on wider benefits for all.

The Finance Minister revealed a significant change that will bring relief to many households: 99 percent of products currently under the 12 percent tax regime will be shifted to the 5 percent tax bracket. This move is a core part of the GST 2.0 design, which she said is specifically intended to benefit the middle class in a big way. She highlighted that common household items like pulses and salt have also been moved to the 5 percent tax bracket.

Addressing past criticism, including the "Gabbar Singh Tax" label, Sitharaman argued that the GST ultimately benefits consumers. She pointed to the system's success, highlighting the increase in GST taxpayers from 66 lakh to 1.51 crore over the past eight years. She also praised the GST Council as a symbol of federalism, fostering a "One Nation-One Tax" system. The minister projected that the new tax regime will inject up to two lakh crores of cash back into the hands of the people.

Union Finance Minister Sitharaman concluded by reaffirming the foundational principles of the GST. She stated that the tax system was designed with the poor, middle class, farmers, MSMEs, and other vital sectors of the country as its pillars, underscoring its role as a tool for economic upliftment and stability.