Has PM Modi Truly Given a Significant Gift to Common Citizens through GST 2.0?
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Synopsis
Union Electronics Minister Ashwini Vaishnaw praises PM Modi's GST 2.0 reforms as a substantial gift for the common citizen, promising enhanced economic growth and relief for the middle class. Discover how these changes aim to simplify taxation and promote affordability for essential goods.
Key Takeaways
- GST 2.0 reforms simplify the tax system.
- New slabs: 5% and 18%.
- Focus on easing the financial burden for middle-class families.
- Expected to stimulate economic growth.
- Implementation date set for September 22, 2025.
New Delhi, Sep 6 (NationPress) Union Electronics and IT Minister Ashwini Vaishnaw stated on Saturday that Prime Minister Narendra Modi has bestowed a significant gift upon the common populace through the introduction of next-generation GST reforms. He commended PM Modi's commitment to providing benefits to middle and lower-class households, noting that while income tax exemptions were previously applicable for earnings up to Rs 12 lakh, the GST rationalization will now offer substantial relief to lower-income groups.
The minister highlighted that the GST reform will greatly enhance the nation’s economic progress. "Our country's GDP stands at Rs 330 lakh crore, with consumption contributing approximately Rs 202 lakh crore. If the GST reforms yield even a modest 10 percent rise, consumption could surge by around Rs 20 lakh crore, resulting in an additional GDP of Rs 20 lakh crore, a considerable increase in its own right," he articulated.
He further asserted that this rise in consumption would stimulate job creation. Economic activities will begin to flourish sequentially, initiating a positive feedback loop. The combination of income tax exemptions and the landmark decision on GST will ultimately empower middle-class families financially.
The 56th GST Council previously approved these modern GST reforms, transitioning from a complex multi-slab system to a more streamlined two-slab system of 5 percent and 18 percent, set to take effect on September 22, 2025.
The GST 2.0 reforms aim to make essential goods and services more affordable, alleviate compliance burdens for businesses, and foster consumption-driven economic growth. The former GST structure comprised four slabs: 5 percent, 12 percent, 18 percent, and 28 percent.
Point of View
The recent GST reforms represent a strategic move towards enhancing the economic landscape of India. By focusing on simplifying tax structures and providing relief to the middle class, the government aims to stimulate consumption and drive employment. This approach aligns with the broader objective of fostering inclusive growth, ensuring that all citizens benefit from economic advancements.
NationPress
06/09/2025
Frequently Asked Questions
What are the key features of GST 2.0?
GST 2.0 simplifies the tax structure into two slabs of 5% and 18%, aiming to reduce prices of essential goods while easing compliance for businesses.
How does GST 2.0 affect middle-class families?
The reforms aim to increase the disposable income of middle-class families by reducing tax burdens, thereby enhancing their purchasing power.
When will GST 2.0 take effect?
GST 2.0 is set to be implemented on September 22, 2025.
What impact will GST 2.0 have on the Indian economy?
The reforms are expected to boost consumption, leading to economic growth, job creation, and a positive cycle of increasing economic activity.
What is the previous GST structure?
The earlier GST structure included four slabs: 5%, 12%, 18%, and 28%.
