GST 2.0 Launches Today: Tax Relief for Middle Class, PM Calls It a ‘Festival of Savings’
GST 2.0 Launches Today: Tax Relief for Middle Class, PM Calls It a ‘Festival of Savings’
India entered a new era of tax reform today as the government rolled out GST 2.0, a simplified structure aimed at easing the financial burden on households and boosting business activity. Prime Minister Narendra Modi described the reform as a “GST Savings Festival”, assuring citizens that the changes will put more money in their hands, make essentials cheaper, and accelerate India’s path toward self-reliance.
Speaking on the eve of the launch, the Prime Minister reminded people of the government’s recent move to exempt annual incomes up to ₹12 lakh from income tax. He said the combined benefits of tax relief and GST reforms would enable citizens to save over ₹2.5 lakh crore within a year. “This is not just a reform, but a festival of savings for every Indian household,” he said.
Under the new system, the earlier five GST slabs have been reduced to three—5%, 18%, and 40%. Items such as refrigerators, televisions, scooters, air conditioners, and housing are expected to become cheaper, giving a much-needed boost to the middle class. Modi urged people to embrace Swadeshi products, stressing that Navratri this year marks “a big step toward building a self-reliant India.”
Recalling the pre-GST era of multiple taxes like VAT and service tax, he noted that GST had unified the nation’s taxation under the principle of “One Nation, One Tax.” GST 2.0, he said, represents an upgrade aligned with India’s present needs and future vision.
My address to the nation. https://t.co/OmgbHSmhsi
— Narendra Modi (@narendramodi) September 21, 2025
The Prime Minister also highlighted the country’s social transformation, noting that 25 crore people have risen out of poverty in the last 11 years, many entering the lower middle class. He said both tax exemptions and GST relief would lower their cost of living and expand opportunities. Micro, Small, and Medium Enterprises (MSMEs) too are expected to benefit from reduced tax burdens and simpler compliance, helping them compete globally.
A new wave of GST benefits is coming to every citizen. pic.twitter.com/y7GXC9S3vo
— PMO India (@PMOIndia) September 21, 2025
Appealing to citizens, Modi said: “Every shop should proudly showcase Indian products, and every Indian should say with pride that they use Swadeshi goods.” He also urged state governments to encourage domestic manufacturing and create investment-friendly policies, stressing that India’s growth depends on joint efforts of the Centre and states.
India's prosperity will draw strength from self-reliance. pic.twitter.com/4si5mDH4Zd
— PMO India (@PMOIndia) September 21, 2025
The announcement, however, drew sharp criticism from the Opposition. Congress president Mallikarjun Kharge accused the government of ignoring deeper economic issues. He said, “These amendments are just a bandage on deep wounds. The Centre has collected ₹55 lakh crore in the last eight years and now wants credit for promising savings of ₹2.5 lakh crore.” He also claimed the reforms fall short of addressing state compensation concerns.
New GST reforms are being implemented. Only 5% and 18% tax slabs will now remain. pic.twitter.com/Yy7rynnh6E
— PMO India (@PMOIndia) September 21, 2025
Despite political disagreements, traders and businesses have welcomed the simplified GST, expecting it to boost sales by attracting more customers. Many citizens too are hopeful that the reform will bring relief to their monthly budgets.
