Finance Minister Nirmala Sitharaman has unveiled the much-anticipated GST 2.0 reforms, promising a direct boost of Rs 2 lakh crore to the Indian economy. The new structure, which will take effect on September 22, reduces the existing four tax slabs to just two—5% and 18%. According to the Minister, this simplified system will leave more money in the hands of consumers. Companies have already begun passing on benefits ahead of the rollout.
GST 2.0 Slabs Simplified
Under the rejig, nearly 99% of goods from the 12% slab now fall into the 5% category, while most items taxed at 28% have been shifted to 18%. Essentials such as UHT milk, paneer, roti, and parathas are completely exempt. Products including butter, cheese, jams, sauces, and dry fruits will now be taxed at just 5%. Sitharaman highlighted that these reforms are designed to benefit the middle class, farmers, and MSMEs, while also fuelling job creation and exports.
