Prime Minister Narendra Modi on Sunday announced that the upcoming GST 2.0 reforms will give a fresh push to India’s economic growth while making life easier for citizens. Calling the reform a “bachat utsav” (saving festival), PM Modi said the new tax structure will benefit every section of society by lowering costs and boosting savings.

Highlighting the success of the Goods and Services Tax (GST) introduced by his government, the Prime Minister said, “When you gave us the opportunity in 2014, we made GST our priority in the public interest and in the national interest. We discussed with every stakeholder, addressed every state’s doubts, and created a uniform system for the entire country. It was the result of joint efforts of the Centre and states that India was freed from the web of dozens of taxes.”

GST 2.0 – Two-Slab Structure

PM Modi explained that the next-generation GST will simplify the tax system by introducing just two slabs – 5% and 18%.

• Everyday essentials like food items, medicines, soaps, brushes, toothpaste, health and life insurance will either be tax-free or fall under the 5% bracket.

• Most other goods and services will fall under 18%, which he said will bring more clarity and affordability.

He added that this simplified structure will reduce tax burdens, improve compliance, and lead to savings worth ₹2.5 lakh crore for the people, especially with the recent rise in income tax exemption limits.

Neo-Middle Class at the Centre of Growth

The Prime Minister also pointed out that over 25 crore people have come out of poverty in the last 11 years, joining what he called the “neo-middle class”, who are now key drivers of India’s growth.

Push for Atmanirbhar Bharat

Reiterating his call for self-reliance, PM Modi urged citizens to buy Made in India products and make every home a “symbol of Swadeshi.” He emphasized that MSMEs, small industries, and cottage industries will be the biggest beneficiaries of GST 2.0, saying, “The reduction in GST rates and simplification of rules will increase their sales and reduce their tax burden, giving them double benefits.”

PM Modi concluded by reminding that reforms are an ongoing process: “A nation’s needs change with time. GST 2.0 has been brought considering India’s current needs and future dreams. To reach the goal of a developed India, we must walk the path of self-reliance.”