Manipur: Govt launches GST 2.0 campaign to simplify and educate the tax system

Imphal: The President's rule in the Manipur government, under the directive from the Indian government, has launched Next Generation (Next-Gen) GST Reforms, also called GST 2.0, which started on September 22, 2025, to simplify and educate the tax system with a two-tier 5% and 18% rate structure, alongside a 40% rate for luxury goods on Friday.

The Department of Taxes, Government of Manipur, in coordination with the Consumer Affairs and Public Distribution Department and the Directorate of Information and Public Relations, has started a “Market Drive” across key commercial hubs in the heart of Imphal city, such as Thangal Bazar, Paona Bazar, and Khuyathong on Friday.

Under the new structure, GST has been reduced to two tax rates of 5 and 18% by moving products from the current 12% and 28% slab to lower rates.  GST has been reduced from four major slabs — 5, 12, 18, and 28 percent — to two slabs of 5 and 18 percent. A special 40% rate would be levied on a select few items.

This reform aims to make essential items, such as groceries, stationery, and auto components, cheaper, benefiting common citizens and small businesses. To educate people about these changes, the government plans to conduct public outreach in marketplaces across India, with initial efforts focused on informing consumers about savings and simpler procedures.

The new campaign brought positive news for the people in the state.

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BJP Manipur leader and also Rajya Sabha MP from Manipur, Leishemba Sanajaoba, said that the new reforms will strengthen the relationship between traders and consumers and among the citizens. It will improve overall transparency. The reforms are overall satisfactory for every section in the country, will boost the economy, and make the country developed by 2047.

However, on August 8, 2025, Manipur Congress president Keisham Meghachandra said the Goods and Services Tax (GST) regime poses significant challenges for the state, as its economic and infrastructural conditions differ vastly from the rest of the country.

In a post on X, Keisham wrote: "GST — A One-Nation Tax That Overlooks Manipur's Unique Realities. Manipur is likely to face grave difficulties following the passage of the amendment to the State GST in Parliament."

“The ‘one-size-fits-all’ approach of GST does not serve the interests of small, landlocked, and socio-economically fragile states like Manipur,” he said.