GST 2.0 Reforms: A New Era in India's Economic Landscape

On Monday, the GST 2.0 reforms were implemented, with BJP MP Jagdambika Pal applauding them as a major step forward under Prime Minister Narendra Modi's leadership. These reforms introduce exemptions in Goods and Services Tax (GST) on essential goods, marking a significant shift in the tax landscape. Pal noted that, for the first time, taxes on medicines, life-saving drugs, insurance, and automobiles have been simultaneously reduced.

In Bareilly, Union Minister BL Verma responded to Congress President Mallikarjun Kharge's criticism of the government's GST policy, urging him to reflect on the UPA regime from 2004-14, highlighting the economic challenges and corruption of that period. Verma praised Modi's leadership, emphasizing the government's efforts to transform the Indian economy, making it one of the world's top four. The new GST structure is seen as benefiting all economic classes, including the middle and lower classes.

BJP's Tarun Chugh described the GST reforms as "historic work" by PM Modi, emphasizing the financial relief they offer to the middle class. According to Chugh, the reduction of approximately 2.5 lakh crore rupees will empower MSMEs and stimulate the Indian economy by promoting indigenous products. The reform restructures the previous four-rate GST system into a simpler two-slab regime of 5% and 18%, while a separate 40% slab remains for luxury and sin goods. This change is expected to reduce consumer prices and enhance industry performance across sectors such as agriculture, automobiles, FMCG, and renewable energy.