GST 2.0 Reforms Aim To Ease Living Costs And Boost Business: PM Modi

Prime Minister Narendra Modi on Friday emphasised that the upcoming GST 2.0 reforms mark more than technical adjustments, describing them as bold steps aimed at improving ease of living, doing business, and investing in India.

The revised tax structure, set to take effect from September 22, is expected to lower prices on over 90 per cent of goods commonly sold across Indian markets.

The Prime Minister responded on social media to an article by Union Minister Chirag Paswan, which outlined the intended impact of the reforms, particularly on essential food items and the domestic food processing sector.

Lower Taxes on Essentials to Help Households & Industry

Under the new regime, ultra-pasteurised milk, packaged paneer, and all varieties of common Indian breads will attract zero GST.

Meanwhile, biscuits, namkeens, breakfast cereals, and coffee will fall under the 5 per cent slab.

These changes, Paswan wrote, aim to ensure food remains affordable while offering businesses greater clarity on classification and taxation.

He noted that lower indirect taxes would help MSMEs scale efficiently and allow families to spend less on groceries without compromising hygiene or nutrition.

For consumers, the impact is direct and tangible. A broader basket of zero or low-tax goods means lower monthly household expenses.

As market competition responds, producers will increase the availability of fortified, ready-to-eat, and ready-to-cook options catering to modern lifestyles.

The article further highlighted how food processing connects farmer incomes with national nutrition goals.

Reduced GST on processed foods encourages steady demand for milk, grains, fruits, and spices, reduces wastage, and helps producers realise better prices.

With urbanisation and rising incomes reshaping India’s consumption patterns, PM Modi emphasised that these reforms will support the rapidly expanding food sector and deliver relief that citizens can ‘taste’ in their daily lives.

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