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the GST rationalisation will boost consumption in the country and push investments, says FM Sitharaman in exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi.
The GST rationalisation will boost consumption in the country and push investments, says Finance Minister Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman on Friday said 99% of all goods and services that are touched by GST are now either in 0% or 5% or 18% slabs, and the latest GST cuts will boost consumption and investments in the country.
In an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi, the finance minister said, “99% of all the goods and services which are touched by GST are now either in 0% or in 5% or in 18%. There’s nothing beyond. So, that 1% is what makes for the demerit goods, which popular parlance says sin goods. So, that is the extent to which we have cleansed the system of anomalies, doubts, duplications and any interpretative issues.”
On the consumption boost following the GST cuts, she said, “There’s more money given already through the income tax cut. The rates are coming down, so the citizen now has a choice to meet his aspirations and his expectations. He cannot say, look, I have the money because the income tax is reduced, but these items are beyond my affordability now. Now everything has come down”
On September 3, the GST Council, led by Sitharaman, approved significant GST cuts on a number of items ranging from daily-use items like shampoo and hair oil to automobiles to TVs. After the 56th GST Council meeting, the finance minister also announced more simplified GST structure with only three tax slabs — 5%, 18% and 40%.
The GST rationalisation will boost consumption in the country and push investments, she said, adding that it will also lead to buoyancy in revenue.
“I have met a lot of individuals from different strata of society saying ‘I have more money to send my son to this medical college. My daughter is already doing engineering and I will be able fund her for higher studies’. On ordinary citizens, working in small stores or driving a car/ taxi, the rate cut has an immediate psychological effects that I can do this which was beyond my affordability. On the back of this, there will be buoyancy in revenue,” she said.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 05, 2025, 16:12 IST
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