Delhi, 22 September (H.S.): Marking a transformative milestone in India’s indirect taxation landscape, the GST 2.0 reforms take effect nationwide today. Coinciding with the first day of Navratri, the overhaul heralds a simplified two-tier tax regime, slashing rates on wide-ranging essentials and boosting optimism across key consumption-driven sectors.
Prime Minister Narendra Modi, in his televised address yesterday, hailed GST 2.0 as a “historic step to empower India’s rising middle class,” pointing to affordable goods as a catalyst for household savings and economic growth. He emphasized that the new structure “will put more money in the hands of citizens, drive demand, and accelerate India’s journey towards a $5 trillion Economy.”
The reforms introduce new slabs of 5% and 18% for the bulk of goods and services, alongside a 40% rate for ultra-luxury or “sin” items. Automobiles, consumer durables, footwear, and dairy products stand to benefit most: GST on small cars is down from 28% plus cess to a flat 18%, while mid-sized and luxury vehicles face 40%. Brands including Maruti Suzuki, M&M, Tata Motors, and Hyundai have announced price cuts of ₹50,000–₹5 lakh per vehicle, promising an immediate sales surge. Consumer durables such as air conditioners, TVs, and refrigerators are set at 18%, a sharp drop from earlier 28%, with industry leaders forecasting a revival in demand this festive season.
Government sources confirm further relief in daily staples—GST on UHT milk, paneer, pizza bread, butter, and ghee now ranges from nil to 5%. Amul has slashed prices on over 700 items, and dairy stocks like Parag Milk Foods are surging up to 25%. Footwear under ₹2,500 incurs just 5% GST, reflecting positive market reactions from Bata and Liberty Shoes, whose shares have jumped 12–20% this month.
Finance Minister Nirmala Sitharaman, unveiling the reforms, described GST 2.0 as “simpler, fairer, and more growth-oriented,” aiming to streamline compliance, boost consumption, empower MSMEs, and reinforce state revenues. With the GST Council’s consensus, the new rates promise timely relief and a powerful stimulus for industries and consumers alike.
The rollout, coinciding with the festive and agricultural cycles, is expected to drive record volumes and benefit millions of households, signaling India’s rapid stride into its next phase of economic development.
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Hindusthan Samachar / Jun Sarkar
