GST 2.0 is 'bachat utsav' for citizens, will boost India's growth: PM Modi

PM Modi said GST 2.0 will cut tax slabs to 5% and 18% from September 22, marking a 'bachat utsav' that simplifies business, reduces prices, and strengthens 'Made in India'

Prime Minister Narendra Modi on Sunday said the rollout of GST 2.0 will mark the start of a “bachat utsav” (savings festival) across the country, promising lower prices, simpler compliance, and stronger investment flows.

 

“From tomorrow in the nation, ‘GST bachat utsav’ will commence. Your savings will increase and you will be able to buy your favourite things. ‘GST bachat utsav’ will benefit all sections of the society,” PM Modi said in a televised address.

 

He added that the reforms will simplify business processes, attract greater investment, and make every state an equal partner in India’s growth story.

 

What changes under GST 2.0

 

Earlier this month, the GST Council approved a two-tier structure of 5 per cent and 18 per cent, effective September 22—the first day of Navratri.

 

• The 12 per cent and 28 per cent slabs have been scrapped.
• About 99 per cent of goods previously under 12 per cent now fall into the 5 per cent bracket.
• At least 90 per cent of items under the 28 per cent slab move to 18 per cent.
• A compensation cess of 40 per cent will apply to luxury and sin goods.

 

PM Modi credited both the Centre and states for moving towards “one nation, one tax,” which he said has freed citizens and businesses from a “maze of various taxes". 

 

Relief for the middle class

 

Recalling earlier income tax reforms, PM Modi said, “When income tax relief up to ₹12 lakh is granted, the lives of the middle class undergo a profound transformation. Now, with the reduction in GST, the poor, the neo-middle class, and the middle class are receiving a double bonanza.”

 

He argued that GST rationalisation would lower household costs while boosting industrial competitiveness.

 

Call for aatmanirbharta and swadeshi

 

The Prime Minister also tied GST 2.0 to his government’s ‘aatmanirbharta’ (self-reliance) agenda, urging citizens to prioritise Indian-made goods.

 

“Just as the country’s independence gained strength from the mantra of swadeshi, similarly, the country’s prosperity will also derive its power from the mantra of swadeshi alone,” he said.

 

PM Modi urged households and shopkeepers alike to adopt swadeshi products. “We need to make every home a symbol of swadeshi, adorn every shop with swadeshi,” he said. 

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