Prime Minister Narendra Modi made a strong call to promote ‘swadeshi’ items, claiming that India’s next-generation GST reforms will bring in a new era in the country’s economic journey. Speaking to the nation on the eve of reduced GST rates going into effect, he stated that the measures will increase the ease of doing business, boost investor confidence, and benefit all segments of society.
PM Modi announced that a “GST bachat utsav,” or savings festival, will begin on the first day of Navratri, coinciding with the implementation of lower GST rates for roughly 375 items and services. Essential things such as food, medicine, household appliances, and cars will become more affordable, providing relief to consumers ahead of the festive season. He claims that when combined with recent income tax breaks, this will act as a “double bonanza”.
The Prime Minister emphasised that the GST’s implementation in 2017 was a historic step towards economic reform, and that GST 2.0 would further streamline the tax structure by reducing slabs to two major categories: 5% and 18%. Ultra-luxury products will pay a 40% tax, but tobacco will remain in the 28% + cess bracket.
