GST reforms to boost economy, rollout to coincide with Navratri: Ashwini Vaishnaw

Vaishnaw says all products will now fall under 5% and 18% GST slabs, excluding luxury and sin items, promising simplified taxation and higher consumption-led growth.

New Delhi: Union Minister Ashwini Vaishnaw on Saturday said the upcoming GST reforms are aimed at boosting the Indian economy and will be implemented starting the first day of Navratri, September 22.

Speaking at a press conference at BJP headquarters, Vaishnaw emphasized that the reforms are entirely domestic in focus and unrelated to any external factors. “The coming 22nd, the first day of Navratri, will bring new happiness for all middle-class families and for 140 crore citizens of this country,” he said.

Finance Minister Nirmala Sitharaman had announced on Thursday that under the GST reforms, most products will fall under either the 5% or 18% tax slab, except for items classified as luxury or sin products.

Vaishnaw added that the planning for these reforms began about a year and a half ago, well before the US elections, in line with Prime Minister Narendra Modi’s vision “to reform, perform, and transform.” “This GST reform will start a transformation journey for the country. In every step, PM Modi has guided us,” he said, dismissing speculation that the US tariff imposition prompted the changes.

Highlighting the impact on taxpayers, he said, “Before 2014, the taxation system was very complex, with goods taxed at multiple levels. GST simplified it, and this rationalisation will further ease people’s lives.”

Vaishnaw also noted that the GST reforms, combined with the income tax relief announced in the 2025-26 Budget, are expected to boost economic growth. “India’s current GDP is about Rs 3.3 lakh crore, with Rs 2.02 lakh crore from consumption. Even a 10% rise in consumption would generate an additional Rs 20 lakh crore, creating a virtuous cycle in the economy,” he said.