New Delhi: Hours before the rollout of the much-anticipated GST 2.0 reforms, Prime Minister Narendra Modi on Sunday evening addressed the nation, describing the new tax regime as a “savings festival” that will benefit crores of Indians.
Extending greetings on the eve of Navratri, the Prime Minister said, “Tomorrow marks the beginning of Navratri, the festival of worshipping Shakti. On the same day, India is taking a big step towards Atmanirbhar Bharat. Along with Navratri, a GST savings festival will begin—your savings will rise, and buying your favorite items will become easier.”
‘Big Boost for Growth and Ease of Living’
PM Modi said the reforms will reduce prices, increase consumption, and bring relief to the poor, middle class, youth, women, and traders.
“These reforms will accelerate Bharat’s growth story, improve ease of doing business, attract more investment, and make every state an equal partner in national development,” he said.
He recalled the historic launch of GST in 2017, noting that it replaced a complex web of taxes with one unified system. “Reform is a continuous process. As times change, new reforms are needed. With GST 2.0, we are implementing next-generation changes to meet today’s needs,” the Prime Minister added.
What Changes Under GST 2.0
- The 12% and 28% tax slabs have been removed.
- Only 5% and 18% slabs will remain, covering almost all goods and services.
- Luxury and ‘sin goods’ will continue to attract higher rates.
- Daily essentials such as coffee, ghee, biscuits, and cooking oil will become cheaper.
- Cars and medical insurance premiums will also cost less.
The reforms, rolled out just ahead of the festive season, are expected to boost public consumption and support economic growth.
‘Double Bonanza’ for Citizens
PM Modi also highlighted that the GST overhaul, along with income tax exemptions announced earlier this year, will save the public nearly ₹2.5 lakh crore. PM said, “This is a double bonanza for every household”.