Prime Minister Narendra Modi has hailed GST 2.0 as a bold reform that will enhance ease of living and business. Taking effect on September 22, the reforms slash tax rates on everyday foods, easing household expenses and boosting MSMEs and farmers
The GST 2.0 rationalisation has reduced rates across textiles and logistics, easing structural anomalies, cutting costs, and boosting demand. The reforms will make garments more affordable, lower freight costs, strengthen SMEs, and enhance India’s export competitiveness, particularly in textile
Finance Minister Nirmala Sitharaman said Next Gen GST reforms have injected ₹2 lakh crore into the economy by reducing tax slabs and rates. GST revenues rose to ₹22.08 lakh crore in 2025, with taxpayers increasing from 65 lakh to 1.51 crore.
Finance Minister Nirmala Sitharaman called GST reforms a win for all citizens, with major tax cuts and simplified slabs. She said the number of GST payers grew from 66 lakh to 1.5 crore, boosting revenue and tax compliance
The government said GST reforms have rationalised food processing tax rates to 5 per cent, reducing compliance burden, correcting duty anomalies, and making food more affordable. The move is expected to boost demand, encourage investments, strengthen MSMEs, and create jobs across the sector
Andhra Pradesh Deputy CM Pawan Kalyan welcomed the GST reforms approved by the Council, calling them a “true Diwali gift” to the nation. Leaders including CM Chandrababu Naidu and Union Ministers Kishan Reddy and Bandi Sanjay also praised the reforms.
Finance Minister Nirmala Sitharaman said the next generation of GST reforms will simplify compliance, benefit small businesses, and boost transparency. She praised banks for improved asset quality, noted record GDP growth, low inflation, and underlined trust, technology, and transparency as guiding principles
Association of Indian Medical Device Industry says changing GST rates for medical devices could impact domestic competitiveness if not carefully managed
Sensex and Nifty surged in early trade on Monday, driven by GST reform plans and S&P’s sovereign rating upgrade for India. Auto, consumer discretionary and cement stocks led gains, while select IT and infrastructure stocks lagged amid global mixed cues
The Finance Ministry has proposed a simplified two-tier GST system with “standard” and “merit” slabs, aiming to reduce taxes on essential and aspirational goods. Linked to PM Modi’s Independence Day pledge, reforms target relief for citizens, MSMEs, and sustainable long-term growth
