On 22 September 2025, India launched Next Generation GST reforms, simplifying the tax system with just two slabs (5% & 18%). GST was reduced on 370+ items, including essentials like food, medicines, toiletries, and stationery. Many life-saving drugs are now GST-free or taxed at 5%. FMCG brands like Amul and Mother Dairy announced price cuts.
The reforms aim to reduce household expenses, boost savings, support MSMEs, and spur investment. PM Modi called it a “double bonanza” with GST cuts and income tax relief (zero tax up to ₹12 lakh), projecting savings of up to ₹2.5 lakh crore for citizens.
The GST Bachat Utsav, launched on the first day of Navratri, is being celebrated nationwide as a festival of savings and economic empowerment.
