Union Finance Minister Nirmala Sitharaman on Thursday announced that the latest round of GST reforms will inject nearly Rs 2 lakh crore into the Indian economy, driving demand across multiple sectors.
Speaking at an event in West Bengal, Sitharaman described the measures as "new generation GST reforms", designed to reduce tax rates, simplify compliance and eliminate ambiguities. She emphasized that the reforms would benefit the poor, middle class, farmers, MSMEs and several key industries in the state.
Bengal to Benefit From Lower GST Rates
Highlighting the regional impact, the Finance Minister said the reforms will directly help Bengal's handicrafts, garments, tea, jute and agro-products sectors. Traditional and popular products such as Nakshi Kantha, Malda mangoes, Darjeeling tea, hosiery and jute bags will now attract lower tax rates, boosting festive season sales.
The revised rates, mostly limited to 5% and 18%, will take effect from September 22, the first day of Navratri, aligning with the Durga Puja celebrations. "Durga Puja is Bengal's biggest festival. People make major purchases during this time and the timing ensures they benefit from the reduced tax burden," Sitharaman said.
Reform Pathway
Sitharaman explained that India has transitioned from four GST slabs to largely two, while clarifying that the country is "not yet" ready for a single GST rate. She also pointed out that revenue leakages caused by misclassification and loopholes-such as differential tax treatment of popcorn varieties-have been plugged.
Calling GST "one of India's biggest reforms", the Finance Minister asserted that the latest changes will spur growth, particularly for Bengal's small-scale and craft-based industries, while boosting consumption nationwide.
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