FM Sitharaman: GST 2.0 Increased E-Commerce Trade by 22%

FM Sitharaman: GST 2.0 Increased E-Commerce Trade by 22%

Issue: To highlight the successful initial impact of the Goods and Services Tax (GST) 2.0 rate rationalization on the digital economy, specifically e-commerce trade volumes and overall consumer purchasing power.

Facts:

• The GST 2.0 tax revision and rate reduction measures were announced and implemented effective September 22, 2025.
• The GST reduction simplified the tax rate structure to primarily two categories, providing economic benefits to traders during the festive season.
• Finance Minister Nirmala Sitharaman addressed a felicitation event held by the Tamil Nadu Traders Federation.

Decision:

Union Finance Minister Nirmala Sitharaman announced that following the implementation of GST 2.0, e-commerce trade increased by 22%.

Key TakeDowns:

• E-Commerce Surge: The 22% increase in e-commerce trade occurred during the period from September 22, 2025, to October 2025.
• Economic Benefit Drivers: The Minister stated that the tax reduction measures increased the purchasing value of the people and the income of traders, which led to overall growth in industry and employment opportunities.
• Sectoral Gains Cited: She specifically highlighted that the automobile sector, insurance sector, and sales of electrical appliances (including TV and AC) grew due to the tax reduction measure.
• Future Simplification: The Minister also noted that steps are being taken to further simplify the GST registration process and income tax filing procedures.
• Total Trade Value: Total trade during the period cited reached $67.7 billion.