Visakhapatnam, Sep 17 (PTI) Union Finance Minister Nirmala Sitharaman on Wednesday said the Next Gen GST reforms have infused Rs 2 lakh crore into the economy, which has left people with more cash on hand, which otherwise would have gone to taxes.

Addressing the Outreach and Interaction Program on Next Gen GST Reforms, she also said, following the tax reforms, 99 per cent of goods under 12 per cent GST slab have moved to five per cent. The rejig has resulted in 90 per cent items under 28 per cent tax slab slipping into the 18 per cent bracket.

"With this New Gen Tax regime, with only two slabs (5 per cent and 18 per cent), Rs 2 lakh crore is injected into the economy. People will have cash on hand," she said.

The miniser said the GST revenues grew to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in 2028 when it was introduced.

According to her, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh. PTI STH GDK ROH

Next Gen GST reforms consolidate tax slabs, lowering consumer tax burdens and expanding the taxpayer base and collections. Next Gen GST reforms consolidated indirect tax rates into two primary slabs, moving most goods from 12 per cent to five per cent and many items from the highest slab into 18 per cent, thereby reducing point-of-sale tax burdens and increasing disposable cash; officials report an expanded taxpayer base and higher nominal GST collections attributed to these reforms.