17 Sep 2025 : Finance Minister Nirmala Sitharaman on Tuesday hailed the recently rolled-out GST 2.0 reforms, calling them a “gamechanger” for India’s economy and a “boon for the common man”. Speaking at an interactive session in Visakhapatnam, the minister emphasized that the new tax regime would make compliance simpler, reduce litigation, and ensure fairer taxation across sectors.
Key Benefits for the Common Man
Sitharaman noted that the revised GST structure is designed to reduce the burden on essential goods and services, thereby directly benefiting middle- and lower-income households. Items of daily consumption such as small cars, two-wheelers, household appliances, and basic food items are set to become more affordable, thanks to lower tax rates under GST 2.0.
The Finance Minister said, “GST 2.0 is not just a reform for businesses but for every citizen. By rationalizing rates and simplifying compliance, we are making taxation transparent and fairer.”
Simplified Structure and Digital Push
GST 2.0 introduces a three-slab system, replacing the earlier complex multi-rate structure. According to officials, the reform focuses on reducing litigation and improving efficiency, while ensuring revenue neutrality for states and the Centre.
Additionally, the government has enhanced the digital backbone of GST with real-time invoice matching, AI-enabled fraud detection, and automated refunds, reducing scope for tax evasion while easing compliance for small businesses.
Positive Market Impact
The announcement of GST 2.0 has already triggered a positive response in the stock markets, with sectors such as automobiles, FMCG, and consumer durables seeing significant gains. Market experts believe the reforms will boost consumption ahead of the festive season, further fueling economic momentum.
Industry Welcomes the Move
Industry leaders have lauded GST 2.0, calling it a historic tax simplification drive. The Confederation of Indian Industry (CII) stated that the reform will enhance India’s competitiveness in global markets by creating a more predictable and stable tax regime.
Small and medium enterprises (SMEs), often burdened with compliance complexities, are also expected to benefit significantly. The new system reduces the filing frequency and allows easier input tax credit claims, freeing up working capital.
Addressing Concerns
While praising the reform, Sitharaman also acknowledged that short-term adjustments may be needed as businesses transition to the new structure. The government has set up helpdesks and digital support centers to assist traders and enterprises during the shift.
She reassured states that their revenue concerns would be addressed through compensation mechanisms, ensuring that federal fiscal stability remains intact.
A Step Towards ‘One Nation, One Tax’
The Finance Minister concluded her address by underlining that GST 2.0 takes India closer to the vision of “One Nation, One Tax, One Market”, a framework aimed at boosting trade, increasing efficiency, and improving ease of doing business.
With the reforms positioned as both pro-business and pro-people, Sitharaman asserted that GST 2.0 would help drive India’s next wave of economic growth.
Summary:
Finance Minister Nirmala Sitharaman, speaking in Visakhapatnam, called GST 2.0 a “boon for the common man”, citing lower tax on essentials, simplified compliance, and a stronger push toward transparent, pro-growth taxation.