Last Updated:September 06, 2025, 20:32 IST

Nirmala Sitharaman thanked state finance ministers for supporting the GST overhaul, unanimously approved at the GST Council, and promising relief for the common man.

Finance Minister Nirmala Sitharaman.

Union Finance Minister Nirmala Sitharaman wrote to finance ministers of all states, expressing gratitude for their support and active role in helping implement the landmark overhaul of the goods and services tax (GST) regime.

In an interview with news agency PTI, Sitharaman said states made their view on the proposal to rejig tax rates but ultimately agreed that it was for the benefit of the common man, an argument that helped reach a unanimous decision at the GST Council meeting earlier this week.

The revision, set to take effect on September 22 and expected to reduce rates on a broad range of products—from butter and chocolates to shampoos, tractors, and air conditioners—was approved at a GST Council meeting on September 3. The council, chaired by Sitharaman, comprises representatives from all states and Union Territories.

“Yesterday, I wrote a letter to each finance minister thanking them, saying, you can have any number of intense discussions and arguments, but finally, the Council rose to the occasion and gave relief to the people of India, to all people of India. And, I am grateful for that gesture. So, I wrote that letter,” she said.

Seh called the work at the Council, truly ‘remarkable’. Despite concerns about potential revenue loss from reclassifying most products into two main categories—5% for essential goods and 18% for all others, eliminating the 12% and 28% slabs—the council unanimously approved the GST overhaul.

The panel was to meet for two days, starting September 3, to discuss the proposal made by the Centre, but ended up approving it on the very first day after a marathon day-long meeting.

“So the sense of the house was, this is a proposal which is going to undoubtedly benefit the common man. There is no point in standing against it… Ultimately, everybody came together for a good cause, and I’m truly very grateful,” the Finance Minister said.

The minister stated that while states have consistently supported rate reductions, their primary concern has been the impact on revenue following the tax cuts.

“I even appealed to them, saying, for the sake of the people of India, please. It’s not just the states. It’s even the Centre that is going to be affected by the reduction. But we’ll make up for it because once the rates come down, people are going to come out to buy, and that will take care of it (revenue impact). That’s how consensus was arrived at,” she said.

Speaking at a press conference following the GST Council meeting, Sitharaman expressed her gratitude to the states for their cooperation and collaborative efforts in implementing one of India’s most significant tax reforms.

On Saturday, she observed that the Council had patiently considered every comment and suggestion from its members. “All points were carefully discussed before reaching a consensus,” she said.

She also emphasised the inclusive nature of the discussions, noting that several ministers who wished to speak again after their initial points had been addressed were allowed to do so.

“Their additional inputs were heard and taken into account,” the Finance Minister emphasised. She also credited states for their constructive participation in the GST Council and their commitment to driving tax reform.

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