Tax Relief Under ‘Next-Generation GST’ Eases Daily Costs for Indian Households, Says Finance Minister

Tax Relief Under ‘Next-Generation GST’ Eases Daily Costs for Indian Households, Says Finance Minister

India’s Finance Minister Nirmala Sitharaman says the New Generation GST has begun reducing household expenses, with families reporting lower grocery bills due to tax cuts on everyday items. The reform aims to simplify the GST structure and deliver direct financial relief to consumers.

India’s Finance Minister Nirmala Sitharaman has said that the government’s “New Generation GST” framework is beginning to deliver tangible relief to consumers, particularly through reduced taxes on everyday essentials. Speaking about the early impact of the reform, she highlighted that the revised tax structure is directly lowering household expenditure across the country.

Citing a recent example, Sitharaman noted that a family in Coimbatore reported a significant drop in its monthly grocery bill—from roughly ₹4,200 to about ₹3,100—after the updated tax rates took effect. According to her, such reductions reflect how the restructuring of indirect taxes is translating into measurable savings for ordinary citizens.

The minister stressed that the new GST model is designed to simplify compliance, rationalise tax slabs and address long-standing distortions in the system. Beyond administrative efficiencies, she said its most meaningful outcome is the relief it offers to consumers who are coping with rising living costs.

Sitharaman added that the ongoing reform is part of a broader effort to ensure that tax policy remains aligned with public interest. As more essential commodities experience downward revisions in GST rates, she said the government expects the cumulative effect to bolster household budgets and make everyday life more affordable.

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