New Delhi, September 4, 2025: Prime Minister Narendra Modi on Thursday announced the rollout of next-generation GST reforms, describing them as a historic step towards making India self-reliant and simplifying tax compliance for citizens. He called the move a “double dhamaka” of happiness ahead of Diwali and Chhath Puja.
The Prime Minister confirmed that the new GST regime, which he referred to as GST 2.0, will take effect on September 22, coinciding with the first day of Navratri. “Without timely changes, we cannot give our country its rightful place in today’s global situation,” Modi said, recalling his Independence Day speech in which he promised reforms that would deliver relief before the festive season.
Highlighting the significance of the move, he said, “Eight years ago, when GST was implemented, a dream of several decades was realized. Today, GST has become even simpler. The new reforms are directly linked to ‘Matrishakti’ and will bring relief to every family in the country.”
A key feature of the reform is the complete removal of the 18 percent GST on individual health and life insurance policies, shifting them to the zero-tax bracket. This change is expected to make insurance more affordable and accessible.
Additionally, GST on several essential medical items has been reduced from 12 percent to 5 percent. These include thermometers, medical-grade oxygen, diagnostic kits and reagents, glucometers and test strips, as well as corrective spectacles.
Modi described GST 2.0 as “a double dose of support and growth” for India. “From the poor to the middle class, from women and students to farmers and youth, everyone will benefit from this reform,” he added.
The reforms, cleared by the GST Council, are also expected to significantly lower the cost of healthcare and related financial services, boosting accessibility and reducing economic strain on households.
PM Modi Announces GST 2.0 Reforms, Calls It a ‘Double Dhamaka’ Before Diwali and Chhath
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