NextFin news, Prime Minister Narendra Modi unveiled the Goods and Services Tax (GST) 2.0 reform blueprint on August 21, 2025, during his Independence Day address at the Red Fort in New Delhi. The new plan aims to simplify the existing GST framework to foster ease of compliance and boost market optimism.
The GST 2.0 initiative proposes to overhaul the current tax structure by reducing the number of GST slabs, including the scrapping of the 12% and 28% tax rates, as recommended by the Group of Ministers (GoM) chaired by Bihar Deputy Chief Minister Samrat Choudhary. The GoM supports replacing the existing four-rate GST system with just two tax slabs to streamline taxation.
The reform is intended to reduce the cascading effect of taxes and make the tax system more straightforward for businesses and consumers alike. Since its launch in 2017, GST has aimed to unify India's indirect tax system, and the 2.0 version seeks to address complexities that remain.
The announcement was made on August 21, 2025, and reported by Business Today and NDTV Profit, citing official government sources and the GoM's recommendations. The reforms are expected to be implemented following further consultations and legislative processes.
This GST 2.0 blueprint reflects the government's ongoing efforts to enhance economic efficiency and support market growth through tax reforms.
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