For years, consumers have juggled complex GST slabs — 5%, 12%, 18%, and 28% — without always feeling the benefit. That changes now.
With the new GST rationalisation effective Monday, Sept. 22, the structure has been simplified to mainly 5% and 18%, and the impact on household budgets could be significant.
On the eve of Navratri, Prime Minister Narendra Modi coupled the GST announcement with a broader ‘Swadeshi’ message, urging Indians to take pride in locally-manufactured items. He also announced, for the first time, that when combined with recent income tax relief, these changes are projected to leave Indians with around Rs 2.5 lakh crore in extra savings.
Emphasising that the dream of “one nation, one tax” was realised with the rollout of GST in 2017, the PM said the upcoming reforms will simplify compliance and ease business operations, marking a significant step towards self-reliance, timed with the very first day of Navratri.
The Rs 2.5 lakh crore figure isn’t merely a statistic. It translates into stronger household budgets, higher demand for both essentials and aspirational goods, and a ripple effect that could energise the broader economy during the festive season.
