GST 2.0 brings festive savings for all; simplifies business operations and shopping.
PM Modi states ₹2.5 lakh crore savings, benefits for poor, new middle class.
Reiterates "Swadeshi 2.0" for quality manufacturing, urges MSMEs to lead India's development.
PM Narendra Modi announced the implementation of GST 2.0 from September 22, the first day of Navratri festival, in a nationwide speech at 5 p.m., which is a significant step in streamlining corporate operations and improving consumer sentiment.
He further stated that people can anticipate easier shopping and more savings as the "Bachat Utsav" (Savings Festival) gets underway. According to Prime Minister Narendra Modi, the forthcoming reforms will benefit women, businesspeople, shopkeepers and the emerging middle class.
PM Modi emphasised that the GST reforms and the increase in income tax exemption limits would collectively save ₹2.5 lakh crore for the people of India. This, he described as a “double bonanza” for the poor, neo-middle class, middle class. The government’s tax reforms aim to accelerate India’s development by making business operations easier and attracting more investments.
“This reform will accelerate India’s growth story,” he asserted.
Recalling the “inefficiencies of the past governments”, PM Modi reflected on how Indian’s citizens were once burdened by multiple taxes, particularly when it came to interstate trade.
He stated that the introduction of GST in July 1, 2017 brought about simplification, making trade and transactions much smoother. With the rollout of GST 2.0, the “One Nation, One Tax” vision has taken a major leap forward.
The revamped GST system will reduce taxes on day-to-day items such as edibles, medicines, soap, brush, paste, health and life insurance, with many now becoming tax free or subject to a modest 5% levy. As a result, 99% of goods that were previously taxed at 12% will now fall under the 5% category.
In addition, the income tax exemption limit has been increased to ₹12 lakh, further simplifying financial challenges being faced by many households. The reduction in GST is expected to make travel more affordable for the common man.
Empowering MSMEs with Reforms
The Prime Minister urged the MSME sector, which plays a vital role in making India self-reliant, to embrace the opportunities presented by GST 2.0. He stated that products manufactured in India must meet the highest standards of quality to realise the larger vision for Swadeshi 2.0 movement. “Making India self-reliant is the need of the hour,” he asserted.
This move is a crucial step towards making India self-reliant and reducing dependency on foreign goods. PM Modi reiterated the need for every household and every shop to support and sell Swadeshi (domestic) products, reinforcing the country’s commitment to self-reliance.
