Prime Minister Narendra Modi has said the latest GST reforms will help make daily life easier and support businesses.“Lowering taxes on everyday foods and packaging will make groceries cheaper, help MSMEs, support farmers, and improve India’s food competitiveness,” Modi said.
The reforms, called GST 2.0, will take effect from September 22, just before the festive season. Union Minister Chirag Paswan said these changes will reduce prices on over 90% of goods sold in India.
Ultra-pasteurised milk, packaged paneer, and common Indian breads will now have 0% GST. Most processed foods, like biscuits, namkeens, cereals, and coffee, will have 5% GST. The aim is to keep food affordable, simplify tax rates, and help industries grow.
Households will see immediate benefits. Lower GST means families spend less on groceries without compromising on quality or nutrition. As prices adjust, consumers will also have more choices in ready-to-cook and ready-to-eat foods.
The reforms also help farmers and MSMEs. By reducing taxes on processed foods, demand for milk, grains, fruits, and spices increases. This reduces wastage and ensures farmers get better prices.
According to Paswan, the reforms are part of PM Modi’s plan to boost ease of living, business, and investment in India.