The new tax regime, approved at the 56th meeting of the GST Council earlier this month, reduces the existing four-slab structure, 5%, 12%, 18%, and 28% to two primary slabs of 5% and 18%.
The Union Government’s comprehensive overhaul of the Goods and Services Tax (GST), referred to as ‘GST 2.0’, came into effect on Monday, coinciding with the onset of Navratri. The new regime introduces a simplified tax structure, featuring reduced rates on essential goods and steeper levies on luxury and demerit items.
Prime Minister Narendra Modi, in a message posted on X (formerly Twitter), described the rollout as the beginning of a ‘GST Savings Festival’, and framed it as a step towards economic self-reliance and the promotion of indigenous manufacturing.
