PM Modi Launches GST 2.0 as a 'Festival of Savings' for Middle Class
Prime Minister Narendra Modi has introduced the 'GST 2.0' regime, transitioning from a four-slab to a simplified two-slab tax system. Termed as 'bachat utsav' (festival of savings), the reform aims to reduce the tax burden on households, potentially saving them ₹2.5 lakh crore. The PM emphasized that this move, coupled with income tax exemptions up to ₹12 lakh for individuals, would benefit the middle and 'neo-middle' class. The reform is also intended to promote 'Aatmanirbharta' (self-reliance) by making domestic products cheaper and encouraging the MSME sector to regain its manufacturing excellence.
Key Points
- The GST system has been simplified from a four-slab structure to a two-slab system to ease compliance.
- Many daily use goods previously taxed at 12% have been moved to the 5% slab.
- Income tax exemption has been provided for individuals earning up to ₹12 lakh per year.
- The reforms are projected to save Indian households nearly ₹2.5 lakh crore through cheaper goods.
Exam Facts
- Income tax exemption limit mentioned: ₹12 lakh per year.
- Estimated household savings: ₹2.5 lakh crore.
- Transition: Four-slab GST system to a two-slab system.
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