🇮🇳 Modi’s Big Moment: “GST Bachat Utsav” & The New GST Era

 

🇮🇳 Modi’s Big Moment: “Play bazaar GST Bachat Utsav” & The New GST Era

What Happened

On September 21, 2025, Prime Minister Narendra Modi addressed the nation. The headline was major tax reform under the banner of “Next-Generation GST” or GST 2.0. 

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From September 22, a simpler, 

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more consumer-friendly GST regime kicks in. Modi calls the reforms part of a “GST Bachat Utsav” (GST Savings Festival). The Times of India+3The Times of India+3www.ndtv.com+3

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The Core Changes: GST 2.0 & New Rates

These reforms simplify multiple GST slabs into fewer, more meaningful ones. Key points: https://www.play-bazaar.com/

• Major consolidation from multiple slabs (including 0%, 5%, 12%, 18%, 28%) into primarily two slabs for most goods and services — 5% and 18%. Moneycontrol+3www.ndtv.com+3Groww+3

• A 40% rate is preserved or introduced for luxury goods, sin goods, tobacco etc. www.ndtv.com+1

• Several items moved to 0% (nil) GST rate — essential foods, daily staples, medicines, certain kinds of insurance, etc. Groww+3The Times of India+3Moneycontrol+3

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Who Gains & Who Pays More

Beneficiaries:

• Poor, middle class & Play bazaar

•  neo-middle class: Items for daily use, food items, medicines are cheaper. Travelling, Play bazaar

• hotel stays, etc., also benefit under lower slabs. Modi emphasized that this is relief for common people. The Indian Express+2The Economic Times+2

• Small shopkeepers & consumers: Simplification means less confusion, easier billing, fewer slabs means simpler compliance etc. Hindustan Times+1

What costs more or stays high:

• Luxury goods / sin goods: Items like certain tobacco products, high-end cars, perhaps some beverages, fancy clothing over certain price thresholds will face higher or unchanged tax. Moneycontrol+2The Times of India+2

• Some premium items which were earlier taxed at lower slabs might see increase. The Times of India+1

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Key Messages from Modi’s Speech

• This reform isn’t just tax adjustment — Modi framed it as part of the vision of an Aatmanirbhar Bharat (self-reliant India), Play bazaar

• and he called for citizens to prefer Swadeshi (made in India) products. Hindustan Times+2The Economic Times+2

• He called the joined implementation with states, Play bazaar 

• indicating cooperative federalism. The Indian Express+1

• Modi also emphasized that these changes are a continuation of previous reform efforts — not sudden, Play bazaar 

• but part of the journey. The Indian Express+1

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What’s Actually Cheaper & What To Check

Here are some examples (non-exhaustive) of what becomes cheaper, and some catches to watch:

Category	What Gets Cheaper / Benefited	What to Watch / Might Become Costlier
Food & staples, daily essentials	Many foods moved to 0% or 5%. E.g. breads (rotis, parathas, etc.), staples, dairy items. The Times of India+2The Times of India+2	Some processed foods, or packaged food items, may still have higher GST,Play bazaardepending on classification.
Automobiles and TVs / Electronics	Cars in lower segment get rate cut (from 28% → 18%), similarly TVs etc. The Times of India+2www.ndtv.com+2	Premium / luxury vehicles still pay high rates; Play bazaar “sin goods” rates up.
Medicines / Insurance	Some medicines and life/health insurance now under nil or lower taxed bracket. The Times of India+1	Some niche medical supplies might not get full benefit; tax on diagnostics etc may still apply depending on type.
Soft drinks / Luxury / Tobacco	Likely more expensive or taxed heavily (sin slab) under 40%. Moneycontrol+1	If you consume these regularly,Play bazaarexpect costs up.

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Why It Matters

• Inflation relief: With rates lowered, Play bazaar

• cost of many essential items will drop, reducing inflationary pressure.

• Consumption boost: Play bazaar

• More disposable income for many households, likely higher consumption — could help economic growth.

• Simplification: Fewer slabs = simpler compliance for both consumers and businesses. Play bazaar

• Less confusion, more predictability.

• Political & symbolic: Play bazaar

• Starts Navratri with promise of relief, and pushes patriotic-economic sentiment (swadeshi, self-reliance).

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Things to Watch

• How state governments implement & monitor these changes (some goods are in items which get taxed differently by different states).Play bazaar

• Whether companies actually pass on the benefit (some price cuts depend on invoicing changes etc.). Play bazaar

• Re-classification or disputes: For some items, Play bazaar

• whether they count under the lowered slab might be debated.

• What happens to revenue for government; Play bazaar 

• whether states feel strain.

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📝 Final Take

PM Modi’s “GST Bachat Utsav” is more than a speech — it’s a major reform that stands to ease the burden for millions. 

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GST 2.0 looks like a game changer — simpler slabs, lower taxes for essentials, and a big nudge toward self-reliance. Play bazaar While not everything gets cheaper, the overall direction seems to be in favour of the common person.