From Tax Cuts To Market Optimism: Modi’s Independence Day GST 2.0 Blueprint Explained

In a landmark Independence Day address from the Red Fort, Prime Minister Narendra Modi has promised the most significant reform of the Goods and Services Tax since its rollout in 2017. The proposed GST 2.0 aims to simplify the tax regime by cutting slabs from six to four, lowering GST on insurance premiums to 5%, and reducing rates on essential goods. The announcement has already fuelled optimism in markets, with auto, FMCG, retail, and banking stocks rallying on hopes of stronger festive consumption. For the middle class, this comes as the second major relief in just seven months, following earlier direct tax cuts. In this special Business Today show, Mahesh Jaising, Partner and Leader, Indirect Tax at Deloitte India, and Rumki Majumdar, Economist at Deloitte, decode what the GST rejig means for households, markets, and the Indian economy at large, ahead of the crucial GST Council meeting in September.