GST 2.0 Rollout Tomorrow: 7 Key Takeaways From PM Modi's Address To The Nation

Prime Minister Narendra Modi on Sunday (21 September) addressed the nation ahead of the roll out of the next-generation GST reforms.

The Goods and Services Tax (GST) Council, in its 56th meeting earlier this month, cleared the GST 2.0 under the eight-year old indirect tax regime.

This effectively paves the way for a broad two-slab structure of 5 per cent and 18 per cent with a demerit rate of 40 per cent rate only for super luxury, sin and demerit goods.

The new GST rate structure is set to take effect from tomorrow (22 September), the first day of the holy festival of Navratri.

Wishing everyone on beginning of Navratri, Prime Minister Modi in his address said that from the first day of Navratri, the country is moving a step forward towards atmanirbhar bharat.

"From sunrise tomorrow, India will see the implementation of next gen reforms," he said.

Here are the key takeaways from PM Modi's address:

Cheaper Daily Essentials

The Prime Minister said the new structure would provide major relief to households.

Daily-use items such as food products, medicines, soap, and health and life insurance would either be exempt from tax or fall under the 5 per cent slab.

“99 per cent of Goods that previously had 18 per cent tax, will now be taxed at 5 per cent,” he said.

Middle Class Relief

Highlighting benefits for the middle class, Modi recalled that income up to Rs 12 lakh has been made tax-free.

He noted that when combined with GST cuts, citizens would save more than Rs 2.5 lakh crore annually.

PM Modi added that the poor and neo middle class have gotten a double bonanza.

Travel and Services Made Affordable

The Prime Minister said tourism would also benefit as hotel room rents across most categories had been reduced.

“Travel will be cheaper, because room rent for maximum hotels has been reduced,” he remarked.

MSMEs and Small Businesses

Modi stressed that micro, small and medium enterprises would be among the biggest gainers from GST 2.0.

With reduced tax burdens and simplified compliance, he said these reforms would strengthen the foundation of Viksit Bharat.

“MSMEs and small biz will benefit a lot, their business will get a boost, they will have to pay lesser taxes,” he said.

Push for Made in India

The Prime Minister urged people to promote and purchase Indian products.

“Indian made goods were of a superior quality. We have to gather that reputation back,” he said, calling for shops to be decorated with Made in India items.

He added, “Made in India goods should be accepted worldwide, should surpass all parameters and quality standards.”

Call to States

Appealing to state governments, Modi asked them to boost manufacturing under the Atmanirbhar Abhiyan.

“I urge all state governments to boost manufacturing in their states under this atmanirbhar abhiyan,” he said.

Remembering the Pre-GST Era

The Prime Minister reflected on the period before GST, when traders had to navigate a complex web of taxes such as octroi, VAT, excise, and service tax.

He recalled that transporting goods between Indian cities was so difficult that companies preferred routing consignments via Europe.

“It was easier to send goods from Bengaluru to Europe than from Bengaluru to Hyderabad,” Modi recounted.

He added that GST, introduced in 2017, became possible only after extensive consultations with all states and stakeholders. “

The dream of ‘One Nation, One Tax’ was realised,” he said.

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Also Read: GST 2.0 Roll Out From 22 September: Essentials, Cars, And Appliances Get Cheaper; Sin Goods Costlier