Revised GST rates from September 22 has a West Bengal influence, says Union Finance Minister

Highlighting that the second generation GST reforms will boost the economy by increasing demand, Union Finance Minister Nirmala Sitharaman on Thursday (September 18, 2025) said that the determination of September 22 as the date when revamped taxeswill come into effect has a very strong influence on West Bengal.

“I am happy to say that the determination of 22nd September as the implementation date for the next generation GST reforms was largely influenced by (Durga) Puja. The Shubh Mangal Diwas when the revamped GST comes into effect coincides with the first day of Navratri, the day after Mahalaya. There is, therefore, a strong influence of Bengal in this decision-making,” Ms. Sitharaman said at an event in Kolkata.

Durga Puja is the biggest festival of West Bengal which starts from Mahalaya, beginning of Devi Paksha and continues till Vijay Dashami when the idols are immersed in water bodies.

The Union Finance Minister said that the message from West Bengal will go on to inspire the rest of the country, just as it did during the independence struggle and as Bengal has always done in leading the nation.

“Durga Puja is Bengal’s biggest festival, and people in the State make major purchases during this period. Keeping this in mind, we have chosen this date for the new GST rates to come into effect. This will allow people to benefit from the reduced tax burden during the festive season,” she said.

The Union Finance Minister also highlighted that GST rates have been reduced from 12 % to 5 % number of local produce and handicrafts of West Bengal such as Darjeeling tea, processed mango products from Malda Jute bags, leather goods from Santinetakan, Purulia Chhau Masks, wooden masks of Kushmandi, Madur Kathi, Bankura Terracotta crafts, Shola crafts and Nakshi Kanta among others. Most of these products have Geographical Identification (GI) tags provided by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

The Finance Minister expressed optimism that these changes would spur growth across various sectors in the State.“Bengal is known for its rich craftsmanship and agricultural products, and with the new tax rates, we expect increased sales during the festive season,” she said.

Ms. Sitharaman said that new generation GST reforms were a result of extensive consultations and efforts from all states, with significant contributions from the GST Council.

“I would be amiss if I did not give credit to the States for coming together and agreeing on the proposal in the GST Council to reduce the rates. I wrote personalised letters to the finance ministers in the GST Council, irrespective of party or affiliation, thanking them for playing a very constructive role, as the people of India need this reduction now,” she added.