GST 2.0 biggest gift to the common man; Piyush Goyal says reforms to boost demand, investment and growth

Union Commerce Minister Piyush Goyal has described the GST 2.0 regime as the biggest gift of the Modi government to the middle class, MSMEs, and the common man. "On September 22, the first day of Navratri, all 140 crore people of the country will start getting the benefit of this gift," Goyal said while speaking to the media on the newly introduced GST 2.0 regime.

He stated that the country is now on a path of constant progress and that the government is taking significant steps to achieve its economic goals. As per the Union minister, the government has taken several key reforms post-2014. "After PM Modi's GST measures, the burden on consumers will reduce, and this historic decision will be seen as the biggest transformation decision of all time in India."

The GST measures, he said, will take the Indian economy to new heights. "It will increase demand, its scope expands from food items to white goods, and you can count the things used in everyday life, you'll realise prices are bound to reduce post the GST measures on all these items." He said the government will make sure the GST benefits pass on to the end consumers. "The business community has promised to pass on the given benefits on to end consumers."

Talking about GST 2.0's multiplier impact, Goyal said it'll increase demand, which will attract global investment, which will lead to more jobs, and businesses will see growth. "This can be seen as a cycle of growth. It will have a huge multiplier impact."

Goyal, speaking at the Bharat Nutraverse Expo 2025 yesterday, had said that GST 2.0 is a step in the direction of taking India’s GDP from $4 trillion to $30 trillion by 2047. On the Prime Minister's call to 'Make in India' to increase self-reliance, Goyal said it does not matter whether a company is Indian or foreign, as long as it is investing in India, creating jobs, generating opportunities, and contributing to the country’s growth story.

The GST Council, led by Finance Minister Nirmala Sitharaman, on Wednesday announced big measures to slash GST slabs from four to just two, with an additional tax slab for super-luxury and sin goods at 40%. The FM said the GST Council unanimously approved dual GST slabs of 5% and 18%, which will come into force on September 22. Prime Minister Narendra Modi said the measures will immensely benefit the common man, farmers, MSMEs, the middle class, women, and youth.

Experts say the GST cut could boost India's GDP by 0.1-0.16 ppt and lower inflation by 40-60bps on an annual basis, while its impact on CPI inflation will be around 40-60bps on an annual basis in FY26.