India is gearing up for GST 2.0, which will start from September 22, 2025. Finance Minister Nirmala Sitharaman said the new system introduces a two-slab structure to make taxes easier.
In an exclusive interview with India Today, she noted that GST 1.0 focused on unity, GST 2.0 on simplicity, and hinted at what GST 3.0 may bring.
FROM UNITY TO SIMPLICITY
When GST was first introduced in 2017, it was called a game-changer because it replaced multiple indirect taxes with a single system across the country. That was GST 1.0, a move to unite India under “one nation, one tax.”
Now, the government has unveiled GST 2.0, which will roll out from September 22, 2025. The biggest change is a two-slab tax structure, aimed at making the system easier for businesses and consumers.
WHAT CHANGES FOR PEOPLE
The government says the focus is on the common man and middle class. Basic needs will be taxed at the lowest rate, while luxury goods will carry higher tax. For example, salt and sugar will be placed under the same rate, but sugary drinks and high-sugar products will be taxed differently.
Education will also see clarity, regular schooling will remain tax-free, but commercial coaching centres will not enjoy the same exemption.
Sitharaman stressed that businesses must pass on the benefit of lower taxes to consumers. “This is a big vigilance work for us after September 22. The reduced rates must reach the people,” she said, adding that public sector companies will also be monitored closely.
LOOKING AHEAD TO GST 3.0
While the two-slab system brings much-needed relief, the Finance Minister hinted at the next stage: GST 3.0. This phase, she explained, will ensure that the simplicity achieved in GST 2.0 is maintained and improved.
In other words, GST 3.0 is expected to focus on stability, fairness, and smoother implementation. The aim will be to keep taxes straightforward without causing confusion or burdening small traders.
A REFORM FOR GROWTH
The government believes these reforms will not only make life easier for taxpayers but also boost consumption and economic growth. Sitharaman said, “Buoyancy will come back and even grow. This reform is meant to cushion the economy.”
As the country prepares for GST 2.0 this September, all eyes will be on how quickly the benefits reach ordinary households. And with talk of GST 3.0 already underway, India’s tax system seems set for another wave of transformation.
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