Prime Minister Narendra Modi on Thursday said ‘#NextGenGST’ is a game-changer for manufacturers as lower input costs with simplified slabs of 5% and 18%, faster digital compliance, and rising demand will give a big boost to Made in India products.
In a series of posts shared on X, he said, “Now GST will become even more simple. There are now only two rates of GST 5 percent and 18 percent. From 22nd September …. From the first day of Navratri new rates of GST will come into force. There are reforms even in GST in India’s growth. GST 2.0… a double dose of support and growth for the nation.”
“With GST reforms, 5 jewels have been added to India’s economic growth: firstly the tax system has been made much simpler. Secondly, there will be an improvement in the quality of life of the people of India. Thirdly, consumption and growth both will get a big boost. Fourthly, ease of doing business will get a big support in terms of investment and employment. Fifth, for the Viksit Bharat cooperative federalism will strengthen,” he said.
Modi said significant reforms have been done to the Goods and Services Tax (GST) system, aiming to simplify the tax structure and boost economic growth. The new system will feature two primary GST rates: 5% and 18%, effective from September 22, coinciding with the first day of Navratri.
Highlighting that now there will be easier compliance and reduced tax rates, he said it will lead to reduced prices for essentials and high-value products and will increase affordability and demand. Also it will be a support for investment and employment and enhance cooperation between the Centre and states.
The GST Council’s decision aims to stimulate domestic consumption, reduce the impact of US trade tariffs on Indian exports, and promote economic growth. The simplified tax structure is expected to benefit consumers and businesses alike, with many essentials and high-value products becoming more affordable.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on Wednesday approved the simplified dual-rate system, replacing the earlier four-slab structure. The reforms aim to ease living for the common man, support farmers, MSMEs, the middle class, women, and youth, while fostering growth across key sectors of the economy.