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Key Points

Union Minister Ashwini Vaishnaw has described the new GST reforms as a major gift from PM Modi to common citizens. The simplified two-slab tax system is expected to provide significant relief to lower and middle-income families. These changes are projected to boost consumption by Rs 20 lakh crore, substantially increasing India's GDP. The reforms will also create more employment opportunities through enhanced economic activity.

Key Points: Modi GST 2.0 Reforms Gift to Common Citizens Says Vaishnaw

  • GST 2.0 simplifies tax structure into two primary slabs of 5% and 18%
  • Reforms aim to make essential goods more affordable for common citizens
  • Expected to stimulate consumption and create a virtuous economic cycle
  • Projected to boost GDP by an estimated Rs 20 lakh crore
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PM Modi has given huge gift to common citizens in form of GST 2.0: Ashwini Vaishnaw

Union Minister Ashwini Vaishnaw praises PM Modi's GST 2.0 reforms, highlighting tax relief for lower-income groups and a projected Rs 20 lakh crore GDP boost.

"Following the GST reforms, if there is an increase of even 10 per cent, then consumption will increase by about Rs 20 lakh crore - Ashwini Vaishnaw"

New Delhi, Sep 6

Union Electronics and IT Minister Ashwini Vaishnaw on Saturday said that Prime Minister Narendra Modi has given a big gift to common citizens in the form of next-generation GST reforms.

Praising PM Modi's intention of extending benefits to middle and lower class families, the minister said that earlier, the income tax was exempted for earnings of up to Rs 12 lakh and now, the GST rationalisation will give huge relief to the lower-income groups.

The minister emphasised that the GST reform will provide a huge benefit to the country's economic development.

"Our country's GDP is Rs 330 lakh crore, to which consumption contributes nearly Rs 202 lakh crore. Following the GST reforms, if there is an increase of even 10 per cent, then consumption will increase by about Rs 20 lakh crore, meaning an additional GDP of Rs 20 lakh crore will come to the country, which is a significant increase in itself," the minister stated.

The increase in consumption will lead to an uptick in employment opportunities, the minister added.

Many economic activities start increasing one after the other. This creates a virtuous cycle. Income tax exemption and the big decision of GST together will help in increasing the money in the hands of our middle-class families.

Earlier, the 56th GST Council approved the new-age GST reforms, simplifying the tax structure from a multi-slabs system into a primary two-slabs system of 5 per cent and 18 per cent, effective September 22, 2025.

The GST 2.0 reforms are aimed at reducing prices of essential goods and services more affordable, easing the compliance burden on businesses, and stimulating consumption-led economic growth. The earlier GST structure contained 4 slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

- IANS

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Reader Comments

S
Shreya B
As a small business owner, I'm really looking forward to the simplified compliance. The multiple GST slabs were a nightmare to manage. This should reduce our accounting costs significantly 👍
A
Arjun K
While the intention seems good, I hope the implementation is smooth. Last time GST rollout created so much confusion. Government should ensure proper training for businesses before September 2025 deadline.
P
Priya S
More money in hands means more spending power for families like ours. Hopefully this boosts the economy as promised and creates more job opportunities for our youth 🇮🇳
K
Karthik V
The economic numbers look impressive - Rs 20 lakh crore additional GDP potential is massive! If executed properly, this could be a game-changer for India's growth story. Fingers crossed 🤞
M
Meera T
I appreciate the focus on lower-income groups. The combination of income tax exemption and GST rationalization should genuinely help struggling families. Hope the benefits reach those who need it most.

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