From middle class focus to tax materials to fine printing: 5 things to make GST 2.0 a consumer mini budget

At a rare 10 p.m. press conference on Thursday, September 3, Finance Minister Nirmala Sitharaman announced major tax changes that affected the public. The late-night announcement immediately introduced the explanations of consumers, companies, decision makers and experts.

First of all, here are some foods to think about.

What do you think of when you think of union budgets?

• Simplified tax system: Item lists and market buzz, involving cheaper or more precious things
• Stimulate demand: Focus on measures to promote domestic consumption
• Benefits for citizens and small businesses: Usually, there is some good news for ordinary people and businesses

Now, what do you think when you think of the latest GST tax cuts?

According to Singhvi, the Prime Minister’s “Diwali Gift” reform will promote consumption and contribute to economic growth in the long run. He called GST 2.0 the biggest reform since 25% of corporate tax cuts took effect in 2019, adding that over time, the estimated loss of revenue will be offset by stronger consumption.

Just like budgets, these reforms have broad implications for both the ripple effects of consumers and the economy as a whole.

This is Five basic similarities Between GST 2.0 and union budget – at least its “tax advice” section:

Simplify and rationalize policies

The 56th GST Committee meeting simplified the rate structure from four tablets (5, 12, 18%) to two main boards – 5% (necessary goods) and 18% (most goods and services), for 40% of luxury goods and sin goods, respectively.

Similar rationalization efforts are a sign of budget, whether it is an income tax tablet, reducing corporate taxes or simplifying customs duties.

Focus on consumption and growth

GST 2.0 cuts taxes on hundreds of products in six categories, with an estimated cost of Rs 4.8 crore. Experts believe that rising consumption will do this.

Budgets often stimulate demand – from tax rebates for housing and cars to pandemic stimulus packages.

The spotlight for ordinary people, farmers and small businesses

These reforms have eased compliance with MSMES, reducing daily necessities, exempting taxes from life and health insurance, and taxes on small cars, white goods, and such as tractors and fertilizers, such as tractors and fertilizers.

This echoes past budgets, defining farmers’ welfare, MSME support and relief for middle-class families.

Transparency and process simplification

GST 2.0 reform introduces pre-filled returns and faster refunds to increase transparency and reduce litigation.

In the past, this was a common feature in union budgets, such as linking PAN to Aadhaar, enhancing measures such as TD and e-invoice specifications.

Structural and sustainable reform

GST 2.0 and budget generally emphasize long-term structural reforms, medium and long-term-GST 2.0, with corrected inversion and rate rationalization, and a budget that focuses on infrastructure, investment incentives and job creation.

Both events reflect the government’s shift to resilience and equitable growth, while simultaneously relating to the wider ambitions of “Atmanirbhar Bharat” (self-reliant India) and “Viksit Bharat @ 2047” (developed India @ 2047) .