The Modi Government has enacted the GST reforms from Monday ie 22nd September, 2025 bringing in a major relief for consumers and alike, leading to a reduction in tax rates on goods and services. As per a report, the new GST reforms will result in savings of upto 13% in the household grocery bills as well as daily essentials. PM Modi congratulated the citizens of India on the onset of the ‘GST Savings Festival’ specially prior to the beginning of the festive season and just after the imposition of 50% tariffs by the US Government on Indian exports.
The Modi Government is very optimistic on India gaining through indigenous production and manufacturing as well as consumption, stressing on the Swadeshi mantra, encouraging more internal production and consumption of goods. As per the Government, the new GST reforms will positively impact the lives of millions of Indians, by making goods affordable.
According to Union Minister and Lok Sabha MP of Ranchi Sanjay Seth, the GST Swadeshi campaign will assist India in becoming self-reliant and called the GST reforms as a Navratri gift from PM Narendra Modi for the citizens of India.
As per PTI, around 99% of the goods used in everyday life have been included in the 5% tax slab or even no-tax with the prices of life-saving drugs decreasing to a great extent.
According to PM Narendra Modi, the new GST reforms will be benefitting each and every section of the society and will help India to accomplish the goal of Vikshit Bharat by the year 2047.
Moreover, the health and life insurance premiums have become more affordable from Monday ie 22nd September, 2025 with the removal of the 18% GST reforms.
As per GST 2.0, all individual health insurance policies which include senior citizen policies and family floater policies are excluded from GST with effect from September 22nd.
The 56th GST Council meeting took a decision on September 3rd to exclude all individual life insurance policies including ULIP, term life or endowment policies from GST.
With the new GST tax cuts, essentials such as daily staples, food items, electronics, cars are now more affordable, with certain goods now attracting higher GST such as luxury goods, high end vehicles and others.
Impact on festive season
With more goods becoming cheaper, households will now have greater disposable incomes and retailers are now witnessing higher footfall.
The GST 2.0 reforms will help to decrease inflation with appliances such as electronics becoming more affordable coupled with automobiles. Fashion wear will also become more affordable along with textiles, footwear, FMCGs, health, wellness, daily essentials.
Most of the categories will witness a double digit growth and tier 2-3 cities will exhibit a stronger growth trajectory. Overall the festive season looks promising for both the consumers and the retailers, with increased sales volume offsetting any kind of revenue loss.
