A Big Relief for Consumers and Businesses
In a major announcement, Finance Minister Nirmala Sitharaman has confirmed that Indians will soon have ₹2 lakh crore more cash in hand thanks to upcoming GST cuts . The move is expected to provide relief to both consumers and businesses, stimulating demand and accelerating economic growth at a time when household budgets are under pressure.
GST Revenues Have Grown 3X in 7 Years
Sitharaman highlighted India’s strong tax collection performance, noting that GST revenues have risen from ₹7.19 lakh crore in 2018 to ₹22.08 lakh crore in 2025 . This remarkable growth — nearly 3X in seven years — has strengthened the government’s fiscal position, creating room for tax cuts without destabilizing revenues.
The sharp rise in collections has been driven by:
Strong growth in consumption and services
Expanding formalization of the economy
Wider tax base coverage across sectors
Digital compliance measures such as e-invoicing and GSTN upgrades
With ₹2 lakh crore set to return to people’s hands , the government is aiming to create a multiplier effect:
Economists believe this tax relief will add fresh momentum to India’s already robust growth story, supporting the goal of making India a $5 trillion economy in the near future.
GST was launched in 2017 as a historic tax reform to unify India’s fragmented indirect tax system. While the rollout faced challenges, revenue stability and digital compliance are now showing results.
The current GST cuts signal a pro-people, pro-growth policy shift . By putting money directly back into the hands of citizens, the government is betting on consumption to drive the next phase of India’s economic expansion.
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