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The central government is monitoring whether businesses are passing on the benefit of its GST 2.0 rationalisation drive to people, sources told Zee Business. Government officials are waiting for a report from field formations due on September 28 to collate and study data in this area, with inputs expected on price cuts across 54 product categories, they added. 

The development comes a day after the central government's GST 2.0 tax cuts took effect, impacting a broad spectrum of items ranging from toothpaste to automobiles. On Sunday, Prime Minister Narendra Modi said that along with the income tax exemption, implemented earlier this year, the GST 2.0 drive would leave Rs 2 lakh crore in the hands of consumers. 

Although the Centre is avoiding immediate action on complaints for now, the department is keeping tabs on the GST rate transition activities, said the sources.

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On Sunday, the Prime Minister described the next-generation GST reforms as a 'bachat utsav' (festival of savings), a day before the onset of Navaratri -- a 10-day festival in Hindu tradition.

The GST 2.0 reform is set to cost the Centre Rs 48,000 crore. 

ALSO READ: GST 2.0 is Here: Key takeaways from PM's letter to citizens as ‘Bachat Utsav’ begins

Finance Minister Nirmala Sitharaman has already asserted that the GST 2.0 will aid consumption, ease inflation and give smaller businesses a stronger growth environment. 

The new GST system simplifies the indirect tax system into just two slabs: 5 per cent and 18 per cent.

A separate 40 per cent GST rate will be levied only on sin goods and ultra-luxury items, like cigarettes.

ALSO READ: GST Rate Cuts: Government issues new FAQs clarifying changes on goods, exemptions, handicrafts and cess

More than three dozen life-saving drugs for cancer, cardiovascular and rare diseases are now fully exempted from GST.

Besides, medical devices and diagnostic kits are set to see a sharp tax reduction to 5 per cent. 

Health and life insurance products have been made tax-free, giving a direct benefit to millions of policyholders.

The government has released a series of documents covering frequently asked questions (FAQs) about the tax changes, to simplify the new structure and rates for the common man. 

ALSO READ: GST 2.0 Bonanza: From breakfast to bed, how a day in the life of a middle-class worker changes

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