How GST rate cuts will impact your wallets from today? The Indian government’s GST reforms, effective from Sept 22, 2025, aim to reduce costs of essential goods, increase taxes on luxury items, and provide relief to inflation-hit families. New Delhi: The Indian government has implemented a new tax system, called GST 2.0, effective September 22, 2025. Its purpose is to provide relief to the common man, control inflation, and make the tax system more straightforward and understandable. The government has either eliminated (0%) or significantly reduced (5%) taxes on many essential items.