India’s new Goods and Services Tax regime, dubbed GST 2.0, took effect from today, ushering in sweeping changes to tax slabs on everyday essentials and consumer goods. The reform was launched by Prime Minister Narendra Modi as part of the nationwide GST Festival, timed with Navratri, and promises lower prices on food items, cars, flight bookings, and household electronics.
The GST Council’s decision to simplify the structure into two broad tax categories is expected to ease compliance, boost consumer savings, and stimulate economic activity. For instance, smart TVs and home appliances now see their GST rates reduced from 28% to 18%, making upgrades more affordable. Major automakers like Maruti, Tata, and Hyundai have announced immediate price cuts in response to the new policy, foregrounding a consumer-centric thrust.
The move is a landmark step toward government’s goal of Atmanirbhar Bharat, aiming to benefit the middle class and less affluent households nationwide.
