Nirmala Sitharaman Thanks States for Unanimous GST Overhaul Support
Union Finance Minister Nirmala Sitharaman has expressed her deep gratitude to state finance ministers for their unanimous support in overhauling the Goods and Services Tax (GST) regime. The finance minister wrote to each of them, thanking them for their active role in the landmark decision.
In an interview with PTI, Sitharaman highlighted that while states had concerns about potential revenue loss, they ultimately agreed that the tax revamp would benefit the common person. The GST Council, which includes representatives from all states and Union Territories, reached a unanimous decision on the first day of its meeting on September 3.
The changes, set to take effect on September 22, 2025, will simplify the GST structure by eliminating the 12% and 28% tax slabs. Most products will now be reclassified into two main categories: 5% for essential goods and 18% for all others. This is expected to reduce rates on a wide range of items, from butter and chocolates to air conditioners.
Sitharaman praised the council’s work as “truly remarkable,” noting that all viewpoints were carefully considered. She explained that she appealed to the states by emphasizing that the Centre would also be affected by the rate reductions, but that increased consumer spending would help offset the revenue impact. The collaborative spirit, she said, was a testament to everyone’s commitment to a good cause.