“GST 2.0 India savings have arrived just before Navratri, with PM Modi calling the launch a ‘festival of savings’ that will reduce the cost of essentials and support small businesses.” He said the new system was a critical step in developing an economically self-reliant India.
GST 2.0 2025: Simplified Tax Structure and Lower Rates on Essentials
With the new reform, the GST structure is simple. “The government has set the GST on most products at 5 percent or 18 percent. While it imposes a 40 percent tax on luxury and sin goods. It has also reduced the GST on many products that previously carried a 12 percent rate—including common items—down to 5 percent.” This will result in groceries, medicine, disinfecting soap, toothpaste, and insurance being less expensive.
The government’s GST reduction, which the Prime Minister has called the “GST Bachat Utsav”, starts on September 22, 2025, which is the first day of Navratri. According to Mr. Modi, the government implemented the timing of the change prior to the festive season, so that people would feel relief in their home budget as early as possible. The government also estimates that the combined effects of the GST reduction and previous income tax relief measures can help citizens an additional ₹2.5 lakh crore.
GST 2.0 Reforms 2025: Latest News, Updates & Insights – The Economic Times
“Whenever you are talking about tax slabs or numbers, this is not just that,” Mr. Modi said.“It is about improving the lives of people with low incomes, the middle class, women, young people, petty shopkeepers, and those involved in the MSME sector.” It is providing families with more room to breathe and businesses with greater opportunities to thrive.”
The Prime Minister also urged the public to personally support local industry by purchasing swadeshi products, linking the GST reduction to the goal of Atmanirbhar Bharat. He indicated that GST 2.0 was a reduction in tax, but also efforts to strengthen the domestic manufacturing sector to create savings and strengthen domestic businesses and the economy.
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