NEW DELHI: Prime Minister Narendra Modi on Thursday lauded the sweeping reforms to India’s Goods and Services Tax (GST) regime, dubbing them a “double dose” of support and growth for the nation. Speaking after the 56th GST Council meeting, Modi described the changes as “GST 2.0” – next-generation reforms aimed at simplifying the tax system and fueling India’s progress in the 21st century.

In an interaction with National Teachers’ Awardees, PM Modi noted that five new gems (panch ratna) have been added to India’s vibrant economy through the GST reforms. These changes are set to take effect from September 22, coinciding with the start of Navratri, a move PM Modi linked to honoring 'Matrishakti' (mother power).

The reforms, announced by Union Finance Minister Nirmala Sitharaman, introduce a streamlined two-tier structure with rates of 5% for essential and merit goods and 18% as the standard rate, while introducing a new 40% levy on luxury and sin goods. The previous 12% and 28% slabs have been largely abolished, with exceptions for tobacco products, which will retain the 28% rate plus compensation cess until outstanding loans are settled.

“GST 2.0 is a double dose of support and growth for the nation,” PM Modi said, adding that the changes represent a “double dhamaka of happiness” ahead of Diwali and Chhath Puja. He emphasized that the overhaul would make life easier for households by reducing taxes on 175 mass-consumption items, such as milk, paneer, snacks, hair oil, soaps, and life-saving drugs – many of which are now at 0% or 5% GST. White goods like refrigerators, air conditioners, and televisions, as well as cement, will now attract 18% tax instead of 28%, potentially lowering prices for middle-class consumers.

PM Modi criticized the previous Congress-led United Progressive Alliance (UPA) government, accusing it of failing to implement meaningful tax reforms despite discussions before 2014. “While discussions on tax reforms were held before 2014, no substantial work was done,” he remarked, crediting his administration for the 2017 GST rollout and now these further simplifications.