'This Navratri is special': Modi as GST 2.0 kicks in
What's the story
Prime Minister Narendra Modi has extended his wishes to the nation on the occasion of Navratri. He called the festival a time of devotion, courage, patience, and determination. "Heartfelt wishes to all for Navratri," he wrote on X (formerly Twitter). The PM also emphasized the spiritual significance of the first day dedicated to Goddess Shailputri and wished everyone good fortune and health with her blessings.
Self-reliance push
GST-saving festival this year: PM Modi
PM Modi further linked the festival with India's push for self-reliance and the "GST Bhachat Utsav." He said this Navratri is special as it is a "GST-saving festival," which will give new energy to the mantra of self-reliance. The prime minister urged everyone to come together in collective efforts toward a developed and self-reliant India during this festive season.
Economic reforms
PM Modi announces new GST reforms
On Sunday, PM Modi had announced new Goods and Services Tax (GST) reforms. He said these reforms would be a "double bonanza" for citizens, as they come with income tax relief up to ₹12 lakh. The prime minister also highlighted how India's socio-economic progress has helped 25 crore people overcome poverty in the last 11 years. He said that a large group of people, known as the neo-middle class, is playing a significant role in India's development story.
Reform process
'A continuous process'
He added that with GST rate cuts and income tax relief, it would be easier for citizens to fulfill their dreams. He described the reforms as a "continuous process," adding they were designed to meet India's current needs and future dreams. He explained that under the new GST structure, there would only be two tax slabs: 5% and 18%. Most everyday items will become cheaper, with food items, medicines, and health insurance becoming tax-free or subject to only 5% tax.
Tax
Luxury cars to see price hike
However, the revised GST structure also introduces a 40% tax slab, replacing the mandatory Compensation Cess levied on certain products. 'Sin goods' like cigarettes and pan masala will be taxed 40%. A similar tax has been slapped on luxury cars with an internal combustion engine (ICE) capacity of over 1,200cc and a length exceeding four meters. This category includes SUVs or MPVs that were earlier taxed at 28% GST rate plus a 22% Cess charge on top of ex-showroom price.