Sun Sep 21 10:25:26 UTC 2025: Okay, here’s a summary of the text, followed by a news article rewrite:

**Summary:**

India is implementing a major overhaul of its Goods and Services Tax (GST) system, dubbed GST 2.0, effective September 22, 2025. The existing four-tier tax structure (5%, 12%, 18%, 28%) will be simplified to a two-tier system of 5% and 18% for most goods and services. A higher 40% tax will be levied on luxury and sin goods like tobacco, aerated drinks, and premium vehicles. The government anticipates this will boost spending by making goods more affordable, increase transparency, reduce classification disputes, and leave consumers with more disposable income. Finance Minister Nirmala Sitharaman calls GST 2.0 a “gamechanger” and expects nearly ₹2 lakh crore to be in people’s hands due to the reforms.

**News Article:**

**India to Launch Simplified GST 2.0 System on September 22, 2025**

**Visakhapatnam, India – September 21, 2025** – India is poised to enact the most significant changes to its Goods and Services Tax (GST) since its inception in 2017. Dubbed “GST 2.0,” the new system, effective September 22, 2025, will streamline the tax structure to a simplified two-tier model for most goods and services.

The current four-tier structure of 5%, 12%, 18%, and 28% will be replaced by rates of 5% and 18%. This simplification aims to reduce confusion, minimize classification disputes, and make compliance easier for businesses. Essential items like food grains, medicines, and daily-use goods will remain at the 5% bracket, protecting affordability for households.

However, a new “de-merit” rate of 40% will be applied to sin and luxury goods, including tobacco, pan masala, aerated drinks, and premium vehicles.

The decision was finalized at the 56th GST Council meeting, led by Union Finance Minister Nirmala Sitharaman. Sitharaman hailed GST 2.0 as a “gamechanger” and a “boon for the common man” during a press conference in Visakhapatnam, stating that these reforms would put approximately ₹2 lakh crore back into the hands of the public.

“The core objective of GST 2.0 is to streamline the country’s indirect tax system by cutting down the number of slabs and removing classification disputes,” said Sitharaman.

The Union Finance Ministry notified the revised Central GST (CGST) rates on Thursday. State governments will follow suit by issuing notifications for State GST (SGST) rates.

The government projects that the reforms will stimulate economic activity by making goods and services more affordable and increasing disposable income. Industry experts believe that the removal of the 12% slab could make several mid-range products more affordable, providing direct financial relief to middle-class families. The Hindu.

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