GST 2.0 and Income Tax Cuts to Save Citizens Rs 2.5 Lakh Crore: PM Modi
Prime Minister Narendra Modi announced that the new GST 2.0 and income tax cuts will save citizens Rs 2.5 lakh crore, making daily essentials and investments more affordable.
Gst 20Income Tax CutsSavingsEconomic ReformsAtmanirbhar BharatReal EstateSep 21, 2025
PM Modi inaugurated the GST Bachat Utsav (savings festival) on September 22, coinciding with the first day of Navratri. He stated that the festival would lead to savings and make purchasing goods and services easier for the public.
Since 2014, GST has been a top priority for the government, with continuous reforms to adapt to the nation's evolving needs. Before the rollout of GST 2.0, goods transported across states faced numerous challenges, including complex documentation, multiple check posts, and varying tax systems. These hurdles often slowed business operations and increased costs. The government discussed reforms with all stakeholders, ensuring a collective decision-making process that led to a smooth implementation.
With the introduction of GST 2.0, the challenges will be significantly reduced, making it easier to transport goods and improving the ease of doing business in the country. The new GST structure has been simplified into just two slabs — 5% and 18%, making daily essentials and even hotel rooms more affordable.
The poor, women, middle class, and neo-middle class will benefit the most from these reforms. The government's 'GST Bachat Utsav' will double the festive season's happiness, making it easier for people to fulfill their dreams, such as buying homes, vehicles, and essential items at lower costs. PM Modi noted that around 25 crore people play a crucial role as the neo-middle class, emphasizing the importance of this segment in the country's economic growth.
The combined impact of GST and Income Tax reforms is expected to save up to Rs 2.5 lakh crore for citizens. These reforms will also accelerate India's growth story, making it easier to do business and attract investments.
PM Modi also called for a push towards Atmanirbhar Bharat, urging citizens to buy Made in India products. He emphasized that MSMEs and small industries are at the core of building a self-reliant India and stressed the need to reduce the reliance on foreign-manufactured goods. The government aims to achieve world-class manufacturing standards, further boosting the country's economic resilience and growth.
The GST Bachat Utsav is not just about savings but also about promoting domestic industries and fostering a culture of self-reliance. By making essential goods and services more affordable, the government aims to improve the quality of life for millions of Indians, particularly those in the lower and middle-income segments.
In conclusion, the implementation of GST 2.0 and the income tax cuts are significant steps towards a more prosperous and self-reliant India. These reforms will not only save citizens a substantial amount of money but also contribute to the nation's economic growth and development.
Frequently Asked Questions
What is GST 2.0?
GST 2.0 is an updated version of the Goods and Services Tax (GST) that simplifies the tax structure into two slabs — 5% and 18%, making daily essentials and services more affordable.
How much money will citizens save with GST 2.0 and income tax cuts?
Citizens are expected to save up to Rs 2.5 lakh crore with the combined benefit of GST 2.0 and the earlier Income Tax reduction.
What is the GST Bachat Utsav?
The GST Bachat Utsav is a savings festival launched by the government to promote savings and make purchasing goods and services easier for citizens during the festive season.
Who will benefit the most from these reforms?
The poor, women, middle class, and neo-middle class will benefit the most, with easier access to homes, vehicles, and essential items at lower costs.
What is the government's call for Atmanirbhar Bharat?
The government is urging citizens to buy Made in India products, emphasizing the importance of MSMEs and small industries in building a self-reliant India.
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