GST overhaul promises savings, simpler system for all: PM Modi

Prime Minister Narendra Modi today announced the rollout of the Next Generation Goods and Services Tax (GST) reforms, describing it as a transformational step towards a simplified, citizen-centric tax regime.

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Speaking on the eve of Navratri, the Prime Minister said the new system — to take effect from September 22 — aims to streamline compliance, reduce consumer costs, and boost economic growth across sectors.

Describing GST 2.0 as a “celebration of savings" and a significant leap in India’s reform trajectory, the Prime Minister noted that the revised structure aligns with the government's vision of Aatmanirbhar Bharat (self-reliant India), and addresses longstanding concerns regarding the complexity of India’s indirect tax system.

“With the sunrise of September 22, India will step into a new era of taxation,” Mr. Modi said in a nationally televised address. “This is not just a reform, it is a celebration — a GST Bachat Utsav — where every household will feel the benefits.”

He said the revamped GST regime retains only two principal slabs: 5% and 18%, with the 12% slab effectively eliminated. According to the Prime Minister, over 99% of goods previously taxed at 12% will now attract a 5% rate, easing prices on essential commodities such as food items, medicines, toiletries, and insurance products.