FM Sitharaman Announces Next-Gen GST Reforms to Ease Burden on Middle Class, Farmers and MSMEs
- Major GST overhaul to benefit consumers, farmers, middle class, and MSMEs.
- Rationalized rates and simpler structure expected by Diwali, covering essentials, aspirational goods, and insurance premiums.
- Reforms to correct inverted duty structures, boost domestic value addition, and cut down disputes.
Finance Minister Nirmala Sitharaman said that the next Goods and Services Tax (GST) reforms will have direct benefit for farmers, the middle class, MSMEs, and citizens in general. The government will introduce a reduced, easy, and transparent GST regime that decreases the tax burden and increases consumption.
While speaking about the GST Council's Group of Ministers (GoM) on compensation cess, insurance, and rate rationalization, Sitharaman emphasized that the reforms are built upon three pillars structural changes, rationalized GST rates, and ease of living. She explained the new GST regime will bring prices of essential and aspirational goods down, thus boosting demand and enhancing access for more people.
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The Finance Minister assured that the GST redesign will set right inverted duty regimes, reduce accumulation of input tax credit, settle classification issues, and increase domestic value addition. She further stated that these changes will establish policy predictability and stability, enable firms to plan long-term confidence and growth strategies.
To facilitate ease of compliance, the Centre will roll out technology-led GST reforms such as online registration without glitches, pre-filled returns, automated refunds, and quicker processing timelines. The move is expected to decrease errors, avert mismatches, and simplify filing GST for businesses in India.
Sitharaman reaffirmed the government’s commitment to cooperative federalism and said the Centre will work closely with states to implement the next-generation GST reforms. She also linked the move with Prime Minister Narendra Modi’s Independence Day announcement of a two-rate GST structure and simplified compliance framework designed to support both consumers and businesses.
