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flag India launched GST 2.0, cutting taxes on essentials and boosting savings.

flag Prime Minister Narendra Modi launched GST 2.0 on September 22, 2025, simplifying India’s tax system to two main slabs—5% and 18%—replacing the previous four-tier structure. flag The reform, effective at midnight on September 21, aims to reduce prices on essential goods like food, appliances, medicines, and building materials, while maintaining a 40% rate for luxury and sin items. flag It coincides with the Navratri festival, branded as a "GST Bachat Utsav" or savings festival, and is expected to deliver a combined benefit of over ₹2.5 lakh crore through lower taxes and a higher income tax exemption up to ₹12 lakh. flag The changes, approved by the GST Council, target affordability for the poor, middle class, farmers, women, and small traders, promoting self-reliance by encouraging "Made in India" products and easing business compliance.

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