The GST 2.0 stands out as one of the greatest upgrades to do waste and cut work to the Goods and Services Tax System. The next-gen reforms are meant for a roll-out on September 22, promise a slimmer avatar with only two tax pathways a radical overhaul from heavier four-slab system.
This shall ease the burden of tax, enhance affordability for consumer goods and ease compliance. The revamped GST is conceived not just as a fiscal intervention but rather as an instrument for driving domestic growth and self-reliance.
What PM Modi Said?
In an address to the nation on the eve of the rollout, PM Modi said GST 2.0 was a hallmark in transforming the economy of India.
He coincided this reform with Navratri as a bit steps for Atmanirbhar Bharat. He appealed to people and state governments to support the Swadeshi products and participate in the ‘GST Bachat Utsav.’ The PM said these changes would increase consumer spending and strengthen India’s manufacturing capabilities.
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What the Union Finance Minister Said?
Finance Minister Nirmala Sitharaman had said that GST 2.0 is not just a tax reduction but a just tax distribution. She estimated that after the reforms Rs. 2 lakh crore would return to consumers and businesses, middle-class households and MSMEs.
By making the tax system more inclusive and transparent, she claimed GST 2.0 will stimulate domestic demand and empower the economically weaker sections.
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What Will Become Cheaper from September 22
- Medicines for cancer and rare diseases will be exempt from GST others will be reduced from 12% to 5%.
- Medical devices and diagnostics drop down to 5%.
- GST will now be levied on two-wheelers and small cars at 18%.
- Personal grooming items including soaps, shampoos, toothpaste and shaving creams are now in the 5% category.
- Electronics like TVs, ACs, washing machines and dishwashers will now come down cheaper.
- The Processed food items, including ice cream, ghee, butter, dry fruits and beverages, form part of the list being slashed free of GST.
How Dairy Products Are Affected?
India’s dairy giant, Amul has already announced price reductions for over 700 of its product packs to comply with the cuts in GST. These include essentials such as ghee, paneer, butter and frozen snacks. The move will benefit accessibility for dairy products and ensure that the gains of this tax will go directly to the consumer. It further reinforces the vision of the government of linking fiscal policy to consumer welfare.
Disclaimer: Information in this article is based on official statements as of Sept 2025; tax rates and product pricing may vary by region or vendor.
