Pro-Poor Approach: Finance Minister explains benefits of GST

Finance Minister Nirmala Sitharaman emphasized the Central Government's "pro-poor approach" in GST implementation, noting that despite lower tax rates, GST revenues as a percentage of GDP have returned to pre-GST levels. \r

She highlighted effective weighted average GST rates' consistent decline since 2017, from 14.4% to 11.6% in 2019, below the suggested Revenue Neutral Rate of 15.3%. The GST turnover threshold for registration has risen significantly, benefiting small businesses. \r

Sitharaman underscored that without GST, states' revenue from subsumed taxes would have been ₹ 37.5 lakh crore, whereas with GST, states' actual revenue reached ₹ 46.56 lakh crore, illustrating the tax regime's revenue-boosting efficacy.