Says “GST 2.0 Reforms to Boost Savings, Benefit All”
New Delhi: Prime Minister Narendra Modi on Monday said that implementation of GST 2.0 marks a significant reform in India’s indirect tax system, as highlighted by Prime Minister Narendra Modi in a letter to citizens. He emphasized that the ‘GST Bachat Utsav’ will enhance savings and provide direct benefits across all societal segments, including farmers, women, youth, and the middle class.
The Prime Minister extended festive wishes for Navratri, linking the celebration to the positive impact of the new GST reforms. Key features of the Next Generation GST reforms include a simplified tax structure with two main slabs of 5% and 18%, significantly reducing taxes on daily essentials. Many items previously taxed at 12% have shifted to the lower 5% slab or become tax-free. This change is expected to lower household expenses and facilitate aspirations such as home ownership and family vacations. Modi noted that these reforms, combined with substantial income tax cuts, could result in savings of approximately Rs 2.5 lakh crore for citizens. The Prime Minister reflected on the introduction of GST in 2017 as a pivotal moment in unifying the tax system under ‘One Nation, One Tax,’ which has eased the tax burden on citizens and businesses. He also highlighted the benefits for small industries and MSMEs, including improved ease of doing business and compliance, which are anticipated to foster growth and opportunities in these sectors. Modi called for a collective effort towards achieving a self-reliant India by 2047, urging citizens to support local products and artisans. He encouraged shopkeepers and traders to prioritize selling Made in India goods, reinforcing the connection between local purchasing and job creation. The recent GST reform was approved during the 56th GST Council meeting, transitioning from a four-slab to a more streamlined two-slab system, while retaining a higher slab for luxury goods.
