In an exclusive interview with News18, Finance Minister Nirmala Sitharaman outlined the landmark GST reforms recently approved by the GST Council, detailing how the revamped system will simplify taxation and support businesses across India. The reforms, effective from September 22, 2025, reduce the GST structure to just two main slabs: 5% and 18%, replacing the earlier 12% and 28% rates. Additionally, a special 40% slab will be reserved for luxury items and sin goods, creating a more streamlined and logical system.

Sitharaman emphasized that this is the first time in eight years that the Centre has played a proactive role in both Compensation Cess adjustments and a comprehensive GST proposal, aiming to simplify processes for small businesses and ensure fairness for the middle class, taxpayers, and all Indian citizens. She described the reforms as a major step toward a simplified and business-friendly environment in India, reflecting the government’s commitment to ease of doing business.

The Finance Minister highlighted that Prime Minister Narendra Modi had called for GST simplification eight months ago, with a focus on benefiting the middle class and small entrepreneurs. According to Sitharaman, the PM had personally engaged in discussions on how the system could be revamped to make taxation easier and more transparent, demonstrating the government’s long-term vision for financial reforms.

During the interview, Sitharaman also touched upon the promotion of Swadeshi goods, in line with PM Modi’s call to boost domestic manufacturing and consumption. The new GST regime is expected to support Indian businesses, enhance compliance, and create a more efficient tax collection mechanism.

Addressing broader economic concerns, Sitharaman outlined India’s financial policy priorities, noting ongoing challenges in global trade, including recent tariffs imposed by the United States on Indian imports. She stressed that the government is actively monitoring these developments and will adjust policies to safeguard India’s trade interests while promoting domestic growth.

The GST 2.0 reforms reflect a shift toward simplified taxation that balances the needs of consumers, businesses, and the government. By consolidating tax rates and introducing a clear slab for luxury and sin goods, the system becomes easier to administer and understand. This overhaul is also expected to enhance transparency and reduce disputes over classification, addressing long-standing challenges in the GST framework.

In conclusion, the exclusive News18 interview with FM Nirmala Sitharaman underscores the government’s commitment to simplifying GST, supporting small businesses, and benefiting middle-class taxpayers. The reforms, effective from September 22, mark a significant step in India’s economic and fiscal policy, aligning with PM Modi’s vision for a simpler, fairer, and more efficient taxation system, while promoting domestic goods and addressing global trade challenges.

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