NEW DELHI|SEPTEMBER 6,2025|SKY LINK TIMES |
Union Finance Minister Nirmala Sitharaman has said that with the GST 2.0 reforms now in place, the Finance Ministry will turn its focus to a long-pending area — non-financial sector regulators.
Sitharaman stressed that the next wave of reforms would target bodies such as the Competition Commission of India (CCI) and the Food Safety and Standards Authority of India (FSSAI).
Focus Shifts to Non-Financial Regulators
The Finance Minister explained that a regulatory reforms committee will review regulations, licenses, certifications, and permissions that often slow down businesses.
“In my Budget speech, I had announced that this is pending reform. It’s very critical,” Sitharaman said, pointing out that the objective is to build trust-based governance and reduce compliance burdens.
According to a government release, the high-level committee will submit recommendations within a year, with states encouraged to join the effort. The reforms are expected to significantly improve ease of doing business, particularly in matters of inspections and compliance.
GST 2.0: Two-Tier Rate Structure from Sept 22
The GST Council recently approved a two-tier GST rate structure of 5% and 18%, effective September 22, 2025. Sitharaman said the new structure is designed to boost consumption and revive demand across industries.
“I enjoyed this phase. It was rigorous, intense — like taking a tough exam and passing,” she said, adding that whether citizens benefit from the reform will be the “next exam” for her ministry.
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Industry stakeholders, especially in automobiles and consumer durables, have reported that buyers are postponing purchases. Sitharaman expressed hope that the new GST rates will trigger “revenge buying,” similar to post-Covid demand recovery.
Revenue Concerns and States’ Response
When asked if states were worried about losing revenue, the Finance Minister admitted that concerns were raised.
“The only question was whether revenues will dip. I explained that all the money comes from the same pool, and we are all in this together,” she said.
With the festive season around the corner, the government expects GST 2.0 to stimulate consumption and strengthen overall revenue inflows.
What It Means for Businesses and Consumers
For businesses: Fewer compliance hurdles once regulatory reforms are implemented.
For consumers: Lower GST rates may encourage spending on cars, electronics, and household goods.
For the economy: A dual benefit of higher consumption and simplified governance.
Sitharaman concluded by noting that the Finance Ministry will closely monitor how GST 2.0 plays out in the coming months, while preparing the ground for the next major wave of reforms.
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