New Delhi, Sep 22 (NationPress) In a move being hailed as the most crucial transformation of the Goods and Services Tax (GST) framework, the Government of India is set to roll out the updated GST model starting Monday.

The comprehensive reforms, sanctioned by the GST Council earlier this month, introduce a streamlined two-tier taxation system and adjust rates for over 375 items, which will have a direct effect on household expenditures nationwide.

According to the new framework, a majority of goods and services will be taxed at either 5 percent or 18 percent, replacing the former four-slab system. A premium rate of 40 percent will specifically apply to ultra-luxury items, sin goods, and demerit products.

Basic necessities such as food grains, medications, and everyday consumer items will continue to fall within the 5 percent category, ensuring they remain affordable for the average citizen. In addition, mid-range products that were previously taxed at 12 percent could see price reductions, as the 12 percent slab has been eliminated.

Goods that will benefit from a reduction in GST rates include ghee, butter, paneer, coffee, snacks, jams, ketchup, dry fruits, and ice cream. The government asserts that this initiative aims to offer financial relief to urban and semi-urban families, especially with the festive season approaching.

To celebrate the introduction of the new GST structure, Prime Minister Narendra Modi announced a nationwide "GST Utsav" commencing with the first day of Navratri, branding it a “festival of savings” for all Indians.

“The next-gen GST reforms kick in tomorrow. It’s like a festival of savings,” PM Modi declared in his national address. “Starting September 22, consumers will have the opportunity to purchase their desired items at lower prices. The underprivileged and the emerging middle class will receive double advantages following the reduction in GST rates.”

The Union Finance Ministry issued the revised Central GST (CGST) rates on September 18, while state authorities are releasing corresponding notifications for State GST (SGST). The cumulative impact of these alterations will be noticeable from Monday onward.

This new system, dubbed GST 2.0, aims to enhance consumption, streamline compliance, and render the indirect tax framework more transparent and user-friendly. Small enterprises, MSMEs, farmers, women, and youth are anticipated to gain significantly from these reforms.