By Admin 
GST 2.0: Finance Minister Nirmala Sitharaman said on Wednesday that improvement in GST structure will provide relief to the common man, farmers, middle class and small businessmen (MSMEs). Under this improvement, it is proposed to keep the tax slabs of 2 percent and 28 percent and keep only 5 percent and 18 percent slabs. The Finance Minister said that the tax system with GST 2.0 will be easy, transparent and growth orientid. According to a post on its official X account of the Ministry, Sitharaman said, this will make the essential items cheap, which will increase their consumption. Let us know that a meeting of the Group of Ministers of GST Council (GOM) was held on Wednesday at Vigyan Bhawan in Delhi.
Union Minister for Finance and Corporate Affairs Smt. @NSITHARAMAN Today addressed the group of ministers (GOMS) Constrated by the GST Council on Compensation Cess, Health & Life Insurance, and Rate Rate Rationalization at Vigyan Bhawan, New Delhi. Union Minister of State for… pic.twitter.com/hmrfocwxbf
– Ministry of Finance (@Finminindia) August 20, 2025
India will become self -sufficient with GST 2.0
During the meeting, the Finance Minister said that he said that people will become self -sufficient with the new system and manufacturing and MSME sector will also be boosted. He said that this is a big step taken towards making the country self -sufficient. During this, he also presented the Central Government’s plan for the GST reform of Next Generation in front of GOMS. He informed that in the coming weeks, the central government will agree with the states.
Discussions will be held in the next meeting
According to the PTI report, the Finance Minister’s address during the meeting was about 20 minutes. During this time he explained that why improve GST structure is necessary, what are the benefits of this? He also asked the states to support this change. The next meeting of GOM will be held on August 21, in which the tax slab will be made easier and insurance tax and compensation cess will be discussed.
GST 2.0 is based on these three pillars
Under the new GST structure, goods will be taxed at the rate of 5 and 18 percent. It has been said to collect up to 40 percent tax on 5-7 ‘syncle goods’ like paan masala, tobacco and online gaming. Under the GST reform, the tax slab will be reduced from 4 to 2. At present, GST has four rates of 5 percent, 12 percent, 18 percent and 28 percent in GST. Right now 5 percent or any type of tax is imposed on the essential foods, while there is a tax of 28 percent on luxury and harmful goods. Sitharaman said that GST 2.0 is based on three pillars- structural revolution, simplification of rates and making life easier.
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