Next-gen GST to roll out from tomorrow; multiple essential goods to see price drop

As the country gears up for Navratri, PM Modi on Sunday announced the roll out of the Next Generation GST from tomorrow (September 22, Monday), aiming to bring substantial relief to consumers and boost market demand.

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According to official sources, new GST regime will simplify the tax structure by reducing number of slabs and cutting rates on essential and widely-used goods. Instead of the current four-tier system, only two slabs — 5% and 18% — will apply to most goods.

Products that previously attracted 12% GST will now fall under the 5% slab. Similarly, items taxed at 28% will be brought down to 18%, which includes electronics, automobiles, and other big-ticket purchases.

Staple consumer items like milk products and life-saving medicines are expected to be entirely exempt under the new framework. Dairy giant Amul has already slashed prices of 70 of its products, anticipating tomorrow's rollout. The Indian Railways has also waived GST on drinking water bottles for passengers.

While the reforms are designed to lower the cost of living and ease the tax burden, traders and consumers are both eagerly awaiting clarity on detailed implementation.

“This reform isn’t just about lowering costs — it’s about unlocking new possibilities. It will boost the savings of our middle class, open doors for our youth, and inject fresh energy into the entire economy,” said PM Narendra Modi in his address to the nation tonight.

The PM highlighted that the reform will play a key role in accelerating India’s economic growth and laying a stronger foundation for a self-reliant nation. “As people’s purchasing power grows, every sector — from industry and agriculture to services — stands to benefit. This is a reform that will make a difference in every household,” he added.

“Previously, we were on four slabs and now this will send a message to the international market that around 90 to 95 percent of our products are being taxed either at the rate of 5 percent or at the rate of 18 percent. This will also enhance the purchasing power of people,” market expert Gopal Saha opined when contacted.