GST reforms to inject Rs 2 lakh crore into economy, says Finance Minister Nirmala Sitharaman
Visakhapatnam (PTI): Union Finance Minister Nirmala Sitharaman on Wednesday said the next generation GST reforms will infuse Rs 2 lakh crore into the economy, leaving people with more cash in hand that otherwise would have gone as taxes.
Addressing the Outreach and Interaction Program on Next Gen GST Reforms, she also said, following the tax reforms, 99 per cent of goods under the 12 per cent GST slab have moved to five per cent. The rejig has resulted in 90 per cent items under 28 per cent tax slab slipping into the 18 per cent bracket.
She said several companies, including some FMCG giants, are voluntarily coming forward to give rate cuts and pass on the benefit to consumers even before September 22, the implementation date for the new GST regime.
"With this new gen tax regime, with only two slabs (5 per cent and 18 per cent), Rs 2 lakh crore is injected into the economy. People will have cash in hand," she said.
She said before undertaking the rate rejig, the NDA government kept five filters- reduction of rate for poor and middle class, fulfilling aspirations of middle class, benefiting farmers community, pro-MSME and sectors that are useful for the country in creating jobs and export potential.
The minister highlighted that the GST revenues grew to Rs 22.08 lakh crore in 2025 from Rs 7.19 lakh crore in 2018 (FY 2017-18).
According to Sitharaman, the taxpayer's number grew to 1.51 crore from the earlier 65 lakh.
Sitharaman said the GST Council is a prime example of cooperative federalism, noting it is the only constitutional body created since independence.
Flaying the previous UPA regime, she described the earlier tax structures as “tax terrorism” and said a lot of exercise went into the implementation of GST as part of one nation-one tax.
“The UPA government went for 10 years. You could not come with GST. You could not convince the states about GST… I could have given a harsh political reply. But not today,” she said.
The restricted GST rate slabs will come into effect from September 22. The GST council has reduced rate slabs from four ( 5, 12, 18 and 28) to just two (5 and 18 per cent).
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Ordinance issued to increase number of Supreme Court judges from 34 to 38
New Delhi (PTI): The government has promulgated an ordinance to increase the strength of the Supreme Court from the present 34 judges to 38, including the Chief Justice of India.
The law ministry notified the ordinance on Saturday, which amended the Supreme Court (Number of Judges) Act, 1956, to increase the sanctioned strength of the top court.
So far, the sanctioned strength of the top court was 34, including the Chief Justice of India (CJI). Now, the number of judges has been increased by four, taking the sanctioned strength to 38.
The top court will now have 37 judges, other than the CJI.
With the apex court having two vacancies at present, and the ordinance coming into force immediately, the Supreme Court Collegium will now have to recommend six names for appointment as judges in the top court.
A bill will be brought in the Monsoon Session of Parliament to convert the ordinance – an executive order – into a law passed by Parliament.
The Union Cabinet had cleared a draft bill on May 5 to increase the number of apex court judges.
The strength of the Supreme Court was last increased from 30 to 33 (excluding the CJI) in 2019.
The Supreme Court (Number of Judges) Act, as originally enacted in 1956, put the maximum number of judges (excluding the CJI) at 10.
This number was increased to 13 by the Supreme Court (Number of Judges), Amendment Act, 1960, and to 17 by another amendment to the law.
The Supreme Court (Number of Judges) Amendment Act, 1986, augmented the strength of judges from 17 to 25, excluding the CJI.
A fresh amendment in 2009 further increased the strength from 25 to 30.
Article 124(3) of the Constitution lists the qualifications required to become a Supreme Court judge.
An Indian citizen who has either served as a high court judge for at least five years, or as an advocate for 10 years, or is a distinguished jurist, can be appointed to the top court.
The strength of the Supreme Court is increased based on the recommendations of the CJI, who writes to the Union law minister. After consulting the finance ministry, the Department of Justice under the law ministry moves the Cabinet with a draft bill.
