FM Nirmala Sitharaman Commits to Smoother GST and Tax Compliance

Union Finance Minister Nirmala Sitharaman on Tuesday was welcomed by the Tamil Nadu Trade Federations on Tuesday for rolling out the GST 2.0 tax revision and reduction measures during a grand event held at the PSG Convention Centre, Neelambur. Over 1,000 traders from across Tamil Nadu gathered at the felicitation ceremony to show their appreciation for the Finance Minister’s recent tax rationalisation initiative and ease of compliance for businesses.

Traders Welcome Simpllified GST and Festive Relief

The president of the federation shows gratitude to the Finance Minister for reducing GST rates to two slabs, calling it a major relief for traders during the festive season.

According to the President, ” The GST reduction has brought major economic benefits to traders and enhanced consumer demand. The simplified structure has improved the ease of doing business across sectors”.

The federation has also presented a charter of 33 demands to the minister, requesting the government to further simplify GST compliance. The major demands among all were a proposal to integrate the two GST categories into a single rate, a parallel pension scheme for small traders, similar to that of small farmers, and a simplified penalty and registration procedure.

Minister Highlights Economic Gains Under GST 2.0 

Finance Minister Sitharaman highlighted the positive impact of GST 2.0 on trade and the economy, noting that trade worth $67.7 billion occurred between September and October 2025, while e-commerce grew 22%. She emphasised that tax reductions boosted purchasing power, trader income, and industry growth, with sectors like automobiles, insurance, and consumer electronics—particularly TVs and air-conditioners—seeing significant gains.

Emphasis on Simplification and SME Support

The Finance Minister emphasised that the government is actively working to simplify GST registration and income tax filing procedures, making compliance more accessible for small and medium enterprises (SMEs). She highlighted the administration’s ongoing focus on strengthening the MSME and retail sectors, ensuring that tax reforms deliver tangible benefits to businesses.

Looking Ahead

With the launch of GST 2.0, the government seeks to streamline tax administration, ease compliance obligations, and boost domestic trade. The enthusiastic response from traders in Tamil Nadu reflects the practical advantages of recent reforms and signals closer alignment between policymakers and the business community.

Conclusion

The warm reception for Finance Minister Sitharaman highlights the positive impact of GST 2.0. Simplified tax slabs, easier compliance, and SME support are boosting trade, consumer demand, and overall economic growth. The reforms signal a stronger alignment between policymakers and the business community, paving the way for a more streamlined and business-friendly tax regime.