The Indian Ministry of Finance, in a Rajya Sabha unstarred question, addressed the claim that the bottom 50% of consumers bear the same Goods and Services Tax (GST) burden as the middle 30%. The Ministry stated that it does not maintain income group-wise GST collection data, making it impossible to confirm or deny the claim directly. The response clarified that GST is a consumption tax, collected by suppliers from consumers. To mitigate the tax impact on essential items, the government has exempted goods and services of mass consumption, such as unpackaged food grains, fruits and vegetables, education, and healthcare. Additionally, items like edible oil, life-saving medicines, and fertilizers are taxed at a reduced rate of 5%. This tiered system is intended to lower the tax incidence on everyday necessities.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

RAJYA SABHA
UNSTARRED QUESTION NO. 2978
ANSWERED ON 19/08/2025

GST burden on consumers

2978 Shri Ritabrata Banerjee:

Will the Minister of FINANCE be pleased to state:

(a) whether it is a fact that the country's bottom 50 per cent of the consumers face the same GST burden as mid 30 per cent; and

(b) if so, the details thereof and the reasons therefor?

ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) & (b): Income group wise GST collection data is not maintained. However, Goods and Services Tax (GST) is a consumption tax that consolidates various indirect taxes into a single tax structure, streamlining the taxation process. Being an indirect tax, GST is collected by the Government from suppliers of goods and services who, in turn collect taxes from the consumers of goods and services. To keep the incidence of taxation low on items of mass consumption, goods like unpackaged food grains, fruits and vegetables and services like education and health are exempt. In addition, items like edible oil, lifesaving medicines, and fertilizers are in 5% slab.