On Sunday, PM Narendra Modi said with the rollout of GST 2.0, Indians will save ₹2.5 lakh crore, effective September 22, along with income tax reforms announced earlier this year. Calling it a “savings festival,” he said the move will ease the burden on the poor and middle class while boosting business confidence.
The revised GST structure simplifies the earlier four slabs into two: 5% and 18%. Ultra-luxury items face a 40% levy, while tobacco remains in the 28% bracket with cess. Nearly 375 goods and services, including medicines, food staples, electronics, and automobiles, are now cheaper.
PM Modi highlighted that the reforms will support small and medium enterprises (SMEs), enhance competitiveness, and drive investor interest. He appealed to citizens to buy swadeshi products to strengthen domestic industries.
The changes come just ahead of the festive season, expected to push demand for FMCG items, automobiles, and household goods. While the government sees this as the biggest GST overhaul since 2017, the Opposition has criticised it as a “band-aid on deep wounds.”
