GST 2.0 is 'bachat utsav' for citizens, will boost India's growth: Prime Minister Mr. Narendra Modi

Prime Minister Mr. Narendra Modi announced the rollout of Goods and Services Tax (GST) 2.0, describing it as the start of a nationwide ‘bachat utsav’ (savings festival) that will lower prices, simplify compliance, and encourage investment flows. In a televised address, he said the reforms will benefit all sections of society, increase household savings, and make every state an equal partner in India’s growth story. He highlighted that GST 2.0 will streamline business processes and strengthen industrial competitiveness, continuing the government’s vision of ‘one nation, one tax.’
Under GST 2.0, effective from September 22, 2025, the 12% and 28% slabs have been removed, creating a two-tier system of 5% and 18%. Around 99% of items previously taxed at 12% will now attract 5%, while at least 90% of goods under 28% move to the 18% slab. Luxury and sin goods will attract a 40% compensation cess. Prime Minister Mr. Narendra Modi credited the Centre and states for achieving this simplification, which complements earlier income tax reforms and provides relief to the poor, middle class, and neo-middle class. He also linked the GST reforms to the government’s ‘Atmanirbharta’ (self-reliance) agenda, urging citizens and businesses to prioritise Indian-made products.

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