GST overhaul: Nirmala Sitharaman writes to State Finance Ministers, thanks them

In a gesture underscoring the spirit of cooperative federalism, Union Finance Minister Nirmala Sitharaman has written to Finance Ministers of all States, expressing gratitude for his or her help and lively position in serving to implement the landmark overhaul of the products and providers tax (GST) regime.

In an interview with PTI, Ms. Sitharaman stated States made their view on the proposal to rejig tax charges however in the end agreed that it was for the good thing about the frequent man, an argument that helped attain a unanimous determination on the GST Council assembly earlier this week.

The overhaul, which can from September 22 see charges of a large swath of merchandise — from butter to goodies and shampoos to tractors and air conditioners — come down, was agreed at a gathering of the GST Council on September 3.

The panel is headed by Ms. Sitharaman and consists of representatives of all States and Union Territories.

“Yesterday, I have written a letter to each Finance Minister thanking them, saying, you can have any number of intense discussion and argument, 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 stated.

She stated the work on the Council was really “remarkable”.Despite apprehensions over lack of income from classifying most merchandise into classes: 5% for frequent use items and 18% for every part else, and eliminating 12% and 28% slabs, the GST Council took a unanimous determination for the GST rejig.

The panel was to fulfill for 2 days beginning September 3 to debate the proposal made by the Centre however ended up approving it on the very first day after a marathon daylong assembly.

“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,” Ms. Sitharaman stated.

The Minister stated States have been all the time in favour of charge discount and their solely concern was with regard to their income implications post-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 get 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 stated.

Ms. Sitharaman, talking at a press convention following the GST Council assembly, had expressed her gratitude to the States for his or her cooperation and collaborative efforts in implementing one among India’s most vital tax reforms.

On Saturday (September 6, 2025), she famous that the Council had given a affected person listening to to each remark and suggestion put ahead by its members.

“All points were thoroughly deliberated before arriving at a consensus,” she stated.

She additionally highlighted the inclusive nature of the discussions, including that a number of Ministers who wished to talk once more after their preliminary factors had already been debated got the chance to take action.

“Their additional inputs were heard and taken into account,” the Finance Minister emphasised. She additionally credited States for his or her constructive participation within the GST Council and their dedication to driving tax reform.