From today, the new GST rates are in force across the country. The four-tier system of 5%, 12%, 18%, and 28% has been reduced to just two slabs ā 5% and 18%.Essential goods like food, medicines, and household items now fall under the 5% tax rate. This means prices of daily-use products will come down.
The government says the reform will help traders, exporters, and the public by cutting costs and making trade easier. It is expected to boost growth, increase savings, and make items like TVs, two-wheelers, and cars more affordable.
Prime Minister Modi called this the ānext generation GST reformā and said it will bring relief to all sections of society.
Economists believe this change will also attract more investment, support local production, and strengthen Indiaās goal of becoming a self-reliant economy.