PM Modi’s GST 2.0 Seen As Major Boost For Households & Economy: Ashwini Vaishnaw

Union Electronics and IT Minister Ashwini Vaishnaw has described the next-generation Goods and Services Tax (GST) reform as a ‘big gift’ from Prime Minister Narendra Modi to ordinary citizens.

Speaking in New Delhi on Saturday, he said the new regime will particularly benefit middle- and lower-income families.

Vaishnaw highlighted how earlier measures, such as income tax exemptions for earnings up to ₹12 lakh, had already given relief to households.

“Now the GST rationalisation will provide huge relief to lower-income groups,” he said.

Economic Impact Expected to be Substantial

The minister stressed that the reform could deliver a significant boost to India’s economic growth.

“Our country’s GDP is ₹330 lakh crore, of which consumption contributes nearly ₹202 lakh crore. Following the GST reforms, even a 10 per cent rise would increase consumption by about ₹20 lakh crore, adding an equivalent amount to GDP, which is a significant gain,” he explained.

He added that higher consumption would generate more employment opportunities and spark a virtuous cycle of economic activity.

“Income tax exemptions and the GST decision together will put more money in the hands of middle-class families,” he said.

The 56th GST Council meeting approved the reforms, which replace the previous four-tier system with two primary slabs of 5 per cent and 18 per cent. The new structure will take effect from September 22, 2025.

According to the government, GST 2.0 will reduce the prices of essential goods and services, ease the compliance burden on businesses, and stimulate consumption-led economic growth.

The earlier GST had four slabs: 5 per cent, 12 per cent, 18 per cent and 28 per cent, often criticised for its complexity.

With the simplified system, the government hopes to make essential goods more affordable while strengthening India’s economic fundamentals.

Also Read: Dr Sarvepalli Radhakrishnan Memorial National Awards 2025 Celebrated In Delhi