By Priya Raghuvanshi

Copyright timesnownews

Prime Minister Narendra Modi addressed the nation on Sunday about the introduction of GST 2.0, a complete overhaul of India’s Goods and Services Tax regime, from September 22. While speaking, he described the reform as a ‘GST Utsav’, a celebration of savings that promises to ease tax burdens, support consumption, revive economic momentum and ease of doing business especially for MSMEs. “GST 2.0 is a GST Bachat Utsav. It will empower our youth, women, farmers, entrepreneurs, and MSMEs,” Modi said in his televised address. Additionally, PM Modi highlighted that the newly implemented GST revisions could collectively save businesses and consumers nearly Rs 2.5 lakh crore. He noted that the streamlined tax structure under GST 2.0 is designed to enhance economic productivity and reduce the financial pressure on everyday citizens. A Push For MSMEs Highlighting the crucial role of MSMEs in driving India’s “golden economic years,” Prime Minister Modi stated that the latest GST reforms are aimed at empowering the sector once again. He urged MSMEs to focus on manufacturing high-quality products that can elevate India’s standing in global markets. MSMEs stand to benefit significantly as simplified compliance procedures and lower indirect costs are expected to fuel retail growth and demand revival. “GST Utsav” As A Path To Self-Reliance Prime Minister Modi highlighted that the reforms emerged from a strong federal consensus, achieved at the 56th GST Council meeting. He said the streamlined tax system will boost purchasing power, encourage formalisation, and energise India’s entrepreneurial ecosystem. “This reform will increase consumption, reduce production costs, and create new jobs. It is a decisive step toward building an Atmanirbhar Bharat (self-reliant India),” he said. Simplified Tax Slabs: From Four To Two Under the new structure, the previous four-rate system of 5 per cent, 12 per cent, 18 per cent, and 28 per cent has been streamlined into two primary slabs, 5 per cent and 18 per cent. A third, 40 per cent “demerit rate” will apply only to luxury and sin goods, such as tobacco, alcohol, and high-end products. Immediate Impact For Consumers And Businesses Starting Monday, September 22, GST 2.0 will be implemented nationwide. Businesses are already recalibrating their pricing strategies, anticipating higher footfall and increased demand due to reduced tax burdens on daily essentials. The government has promised smooth implementation and launched awareness campaigns to help both traders and consumers adapt to the new system. The reform is also expected to plug revenue leakages and enhance overall tax efficiency.