Next-gen GST reforms to boost small business and bring in transparency: FM

Even as Opposition-ruled states are wary of the impact of the next-generation Goods and Services Tax (GST) reforms on their revenue share, Union Finance Minister Nirmala Sitharaman on Tuesday said the changes would ensure transparency and boost small firms and businesses by reducing compliance burden.

“The roll-out of the reforms will absolutely set the country on a path towards an open and transparent economy by creating fresh avenues for small businesses,” she said while addressing the 120th Foundation Day celebrations of the Kumbakonam-headquartered City Union Bank (CUB). Interestingly, the celebration was titled ‘Celebrating Swadeshi Banking’. President Droupadi Murmu was the chief guest on the occasion.

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Referring to Prime Minister Narendra Modi’s recent announcement on the setting up of a dedicated Task Force for the next-generation reforms to simplify regulations, lower compliance costs and build an enabling ecosystem for start-ups, MSMEs, and entrepreneurs, the Finance Minister said, “The planned roll-out of the reforms will set the economy absolutely open and transparent in the coming months.” It will be complemented by the two-day GST council meeting commencing on Wednesday (September 3, 2025).

According to her, the reforms are intended to give a renewed thrust to the vision of Viksit Bharat 2047 in which banks are expected to play a crucial role by expanding credit and driving infrastructure development. Further, she urged banks to bring the unbanked into formal financial services by serving the diverse requirements of citizens through trust, technology, and transparency.

As for achievements in the domain of financial inclusion, she cited the opening of 56 crore Jan Dhan accounts over the past 11 years, a majority of which belong to women, with total deposits crossing Rs 2.68 lakh crore.