FM Thanks States for Support in GST Overhaul

Finance Minister Nirmala Sitharaman publicly thanked state governments for their cooperation in implementing GST 2.0, calling it a landmark reform achieved through consensus. She acknowledged that states played a crucial role in supporting rationalization of slabs and other structural changes, demonstrating the strength of India’s cooperative federalism. Sitharaman noted that despite initial apprehensions, states recognized the long-term benefits of simplification and transparency. She assured that the Centre remains committed to safeguarding state revenues through compensation mechanisms and buoyancy in collections. Analysts observed that the acknowledgement was important in reinforcing Centre-state trust, which is vital for sustaining reforms in a politically sensitive tax system.