Union Finance Minister Nirmala Sitharaman has penned personal letters to each state finance minister, expressing her gratitude for their unified support at the recent Goods and Services Tax (GST) Council meeting. Despite initial concerns about potential revenue losses, state representatives ultimately chose to back the reform, recognizing that the benefits would extend to the common man - an argument that helped secure unanimous approval.

The reforms signed off on at the 56th GST Council meeting include a simplified two-slab structure - 5% and 18% - with a special 40% rate for luxury and sin goods. These sweeping changes aim to make everyday essentials more affordable while encouraging consumer demand across India, with the new regime set to take effect from September 22, 2025.

Sitharaman praised the Council’s deliberate and inclusive deliberations, noting that every concern was heard and addressed. She called the outcome "remarkable," highlighting the spirit of cooperative federalism that made the landmark decision possible.