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24m ago

Modi Announces GST 2.0 From Sept. 22 With Two-Slab Rates and Nationwide 'Savings Festival'

Framing the overhaul as a boost to household budgets and MSMEs, the prime minister urged shoppers to choose swadeshi goods as the new regime begins with Navratri.

PM Modi | Image: Screen Grab
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PM Narendra Modi
Earlier this month, the 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

Overview

  • From September 22, the GST structure shifts from four tiers to two main slabs of 5% and 18%, with a separate 40% band for luxury and sin goods, as approved by the GST Council.
  • Addressing the nation, Narendra Modi said a countrywide 'GST Bachat Utsav' begins at sunrise on Navratri, tying the tax cut to a broader push for Aatmanirbhar Bharat.
  • Major brands announced price reductions effective Monday, including appliance makers cutting AC and dishwasher prices and Amul revising more than 700 product MRPs; Rail Neer also lowered bottled-water prices.
  • The government says about 375 items will get cheaper, with 99% of goods previously at 12% moving to 5% and many items from 28% to 18%, covering essentials, medicines, appliances, electronics and several services.
  • Sectoral fitments include tractors under 1800 cc at 5% and cement at 18%, with Modi highlighting relief for consumers, support for MSMEs and a call to prefer Made-in-India products.