GST 2.0

implementation a ‘festival of savings’, first step towards economic self-reliance, PM says in address to nation

The Prime Minister linked the simplification of the GST system from four to two slabs, the reduced complication of compliance, and the resultant lowering of prices to a broader point of needing Indians to weed out foreign-made products from their lives, and to embrace Indian-made products, thus supporting the nation's Micro, Small and Medium Enterprises (MSMEs).

 "Garv se kaho yeh swadeshi hai aur main swadeshi khareedta aur bechta hoon (Be proud to say you are swadeshi, and buy and sell swadeshi goods)], he said, adding that, in India's past, when it was prosperous, it was because of the first rate goods it produced and traded.

The Prime Minister's address of the nation also comes on the heels of the punitive trade tariffs from the U.S. and a troubled trade outlook. Mr. Modi hailed the next generation GST reforms, as well as the Income Tax exemption of up to ₹12 lakh a year for individuals, as a double bonus to the middle and neo-middle class of India.

"The PM indicated that the country is taking its initial step towards aatmanirbharta on the exact day of the first day of Navratri." He detailed the lengthy process of moving to a GST regime in 2017, which took considerable consultation with stakeholders, as well as all state governments accepting the regime. He also encouraged state governments to implement the same policy of favouring the manufacture of Indian goods. He further clarified that the four slabs in GST had been reduced to two, and that many everyday items, which were previously taxed at 12%, are now levied at 5%.