Prime Minister Narendra Modi has launched next-generation GST reforms, GST 2.0, aimed at simplifying taxation and boosting savings for Indian households and businesses. Starting from September 22, 2025, these changes mark the beginning of the ‘GST Bachat Utsav’ or ‘GST Savings Festival’ across India, promising relief and growth for all sections of society.
Simplified GST: Two Main Slabs
The GST structure has been cut down to two main tax slabs: 5% and 18%, replacing the earlier complex multiple rates. Many daily essentials like food, medicines, soaps, toothpaste, and insurance will now attract lower or nil GST rates. Items previously taxed at 12% have mostly moved to the 5% slab. This will reduce costs for families and ease compliance for businesses, especially MSMEs.
Savings for Every Indian Household
PM Modi highlighted that, alongside income tax cuts, the new GST reforms will save Indian citizens a combined total of nearly Rs 2.5 lakh crore annually. This benefit extends to farmers, women, youth, the poor, the middle class, traders, and entrepreneurs. Lower household expenses will help fulfill dreams such as buying homes, vehicles, and planning family vacations.
Boost to Atmanirbhar Bharat Through ‘Swadeshi’ Drive
Modi urged the public to support Made in India products as part of the nationwide ‘Buy Swadeshi, Sell Swadeshi’ campaign. He emphasized that local artisans, workers, and industries power the Indian economy and create jobs for the youth. Shopkeepers and traders were encouraged to stock and promote Swadeshi goods, fostering economic self-reliance and growth.
Ease of Doing Business
The GST 2.0 reforms also promise easier compliance with features like pre-filled GST returns and faster refunds. This is expected to make tax filing smoother, reduce disputes, and help MSMEs expand, ensuring a stronger industrial ecosystem and more uniform tax rates across states.
Festive Season Boost
Launched during Navratri, the GST Bachat Utsav adds to the festive cheer by making everyday goods affordable and businesses more competitive. The government aims to create a transparent tax system that boosts demand, investment, and overall economic progress towards the vision of a Viksit Bharat by 2047.
In summary, GST 2.0 marks a major reform milestone in India’s taxation journey. It delivers real savings, promotes local industries, and simplifies tax compliance – a win for households and enterprises alike. This initiative sets the stage for robust economic growth rooted in self-reliance and inclusivity.
