Prime Minister Narendra Modi said on Thursday (September 4, 2025) that GST 2.0 will give double support and growth to the country. He called it a necessary step for India's progress in the 21st century.
PM Modi's remarks came a day after the GST Council approved a major reform in the entire tax system. It is being described as the biggest overhaul so far.
Strength to the economy with Panch Ratna
The Prime Minister said that five new gems (Panch Ratna) have been added to the new system. These will further strengthen India's vibrant economy.
He said this while speaking at the National Teachers' Award ceremony. Modi told the teachers that the new reforms will not only bring relief to the traders and the working class but will also accelerate the country's growth story.
New rates will be implemented from Navratri
Now there will be only two major tax rates - 5% and 18%. These changes will come into effect from the first day of Navratri. The government believes that this will make the tax system more easy, transparent and reliable.
New chapter in India's progress
Modi said, "GST 2.0 will pave the way for the coming generations. It will give relief to small traders, industrialists and common citizens. This reform will play a big role in taking India forward in the 21st century."
The government claims that this step will make it easier to do business and will also stop tax evasion.