According to Shekhawat, the changes would increase people’s disposable income, which will increase consumption, of which tourism is a significant component.
Gajendra Singh Shekhawat, the Union Minister of Tourism, said on Monday that the next-generation GST changes, which go into effect today, would benefit everyone in Mumbai, from farmers to “millionaires.”
Approximately 95% of commodities will have their taxes reduced. Speaking at the Network18 ‘Reforms Reloaded’ event in New Delhi, Shekhawat said, “This would assist people have more money in their wallets, which will promote consumption…and tourism is one essential facet of it.”
The Minister went on to say that domestic travel has already increased. For example, traffic to the path that leads to the “Mahakaal temple in Ujjain” has increased by 25%, according to Shekhawat.
Up to 375 common-use products will see significant price reductions starting today as the majority of them will fall under the 5 percent GST slab instead of the previous 12 and 18 percent slabs. Prime Minister Narendra Modi said on Sunday that people will save more than Rs 2.5 lakh crore as a result of the income tax relief and GST reductions.
Shekhawat went on to say that prior to the GST system, there were over eighteen distinct kinds of taxes that were comparable but applied differently in each state. Additionally, it was causing overtaxation. Because of this, it was crucial to implement the GST,” the Minister said, adding that its purpose was to boost the nation’s economy.
“Previously, only a select few were shouldering the tax payment load. We now have a sizable population that pays taxes, whether in little or large quantities. MSMEs and the manufacturing industry would gain from the (2.0) changes, Shekhawat said.
For example, low-risk applicants with monthly GST liabilities up to Rs 2.5 lakh would get automatic registration within three working days as of November 1, 2025. This should cover about 96% of new applications.
Furthermore, starting in November, the system will issue 90% of refund claims on zero-rated goods temporarily based on risk assessment; IDS instances will also be eligible for a similar 90% provisional refund option.
The Congress party burdened people with excessive taxes, according to Shekhawat’s assertions. The Minister said that during their ten-year mandate, “they might have pushed out GST.”
“They discussed EVM in the last election, then ECI, and now ‘vote chori.'” “I am not sure what is going to happen next,” Shekhawat remarked. The Minister said that everyone can learn something from PM Modi, who is a walking university.