From 22nd September, the next-generation GST reforms will come into effect, marking the beginning of a GST Bachat Utsav: PM

Prime Minister   Narendra Modi addressed the nation via video conferencing today. Extending heartfelt greetings to all citizens on the commencement of Navratri, the festival of worshipping Shakti, he remarked that from the very first day of Navratri, the nation is taking a significant step forward in the Aatmanirbhar Bharat campaign. Beginning at sunrise on 22nd September, the country will implement Next Generation GST reforms. The Prime Minister highlighted that this marks the beginning of a GST Bachat Utsav(Savings Festival) across India. He emphasized that this festival will enhance savings and make it easier for people to purchase their preferred items. Shri Modi noted that the benefits of this savings festival will reach the poor, middle class, neo middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs alike. He remarked that in this festive season, every household will experience increased happiness and sweetness. Extending his congratulations, the Prime Minister conveyed best wishes to crores of families across the country for the Next Generation GST reforms and the GST Savings Festival. He underscored that these reforms will accelerate India’s growth story, simplify business operations, make investments more attractive, and ensure that every state becomes an equal partner in the race for development.

Recalling that India took its first steps towards GST reform in 2017, marking the end of an old chapter and the beginning of a new one in the country’s economic history,   Modi highlighted that for decades, citizens and traders were entangled in a complex web of taxes—Octroi, Entry Tax, Sales Tax, Excise, VAT, and Service Tax—amounting to dozens of levies across the nation. The Prime Minister pointed out that transporting goods from one city to another required crossing multiple checkpoints, filling numerous forms, and navigating a maze of differing tax rules at every location. He shared a personal memory from 2014, when he assumed office as Prime Minister, mentioning a striking example published in a foreign newspaper. The article described the challenges faced by a company that found it so difficult to send goods from Bengaluru to Hyderabad—a distance of just 570 kilometers—that it preferred to ship the goods from Bengaluru to Europe and then back to Hyderabad.

The Prime Minister remarked that such were the conditions due to the entanglement of taxes and tolls. He reiterated that the earlier example was just one among countless instances. He highlighted that lakhs of companies and crores of citizens faced daily hardships because of the complex web of multiple taxes.  Modi emphasized that the increased cost of transporting goods from one city to another was ultimately borne by the poor and recovered from customers like the general public.

Emphasizing that it was imperative to free the nation from the prevailing tax complexities,  Modi recalled that upon receiving the mandate in 2014, the government prioritized GST in the interest of the people and the nation. He highlighted that extensive consultations were held with all stakeholders, every concern raised by states was addressed, and solutions were found for every question. He noted that by bringing all states together, such a monumental tax reform in independent India became possible. The Prime Minister stated that it was the result of joint efforts by the Centre and the states that the country was liberated from the maze of multiple taxes and a uniform system was established across the nation. He affirmed that the dream of One Nation-One Tax was realized.

Prime Minister stated that reform is a continuous process, and as times change and national needs evolve, next-generation reforms become equally essential. He emphasized that keeping in view the current requirements and future aspirations of the country, these new GST reforms are being implemented.  Modi highlighted that under the new structure, only 5% and 18% tax slabs will primarily remain. This, he remarked, means that most everyday-use items will become more affordable. He listed food items, medicines, soap, toothbrushes, toothpaste, health and life insurance among the many goods and services that will either be tax-free or attract only a 5% tax. The Prime Minister further noted that of the items previously taxed at 12%, 99%—virtually all—have now been brought under the 5% tax bracket.

Highlighting that in the past eleven years, 25 crore Indians have overcome poverty and emerged as a significant neo middle class segment playing a vital role in the country’s progress, the PM emphasized that this neo middle class has its own aspirations and dreams. He noted that this year, the government has gifted tax relief by making income up to ₹12 lakh tax-free, bringing substantial ease and convenience to middle-class lives.  Modi remarked that now it is the turn of the poor and the neo middle class to benefit. He stated that they are receiving a double bonanza—first through income tax relief, and now through reduced GST. The Prime Minister underscored that with lower GST rates, fulfilling personal dreams will become easier for citizens—whether it’s building a house, purchasing a TV or refrigerator, or buying a scooter, bike, or car—all will now cost less. He added that travel will also become more affordable, as GST on most hotel rooms has been reduced. Shri Modi expressed happiness over the enthusiastic response of shopkeepers towards the GST reforms. He noted that they are actively working to pass on the benefits of GST reductions to customers. The Prime Minister highlighted that in many places, boards displaying price comparisons—before and after the reforms—are being prominently displayed.

Underlining that the mantra of ‘Nagarik Devobhava’ is clearly reflected in the Next Generation GST reforms, the PM highlighted that when the income tax relief and GST reductions are combined, the decisions taken over the past year will result in savings exceeding ₹2.5 lakh crore for the people of India. He affirmed that this is precisely why he calls it a ‘Bachat Utsav’.

Emphasising that achieving the goal of a developed India requires unwavering commitment to the path of self-reliance, Shri Modi stated that a major responsibility in making India self-reliant rests with the MSMEs—India’s micro, small, and cottage industries. He asserted that whatever meets the needs of the people and can be manufactured within the country must be produced domestically.

Highlighting that reduced GST rates and simplified procedures will significantly benefit India’s MSMEs, small-scale industries, and cottage enterprises, the PM remarked that these reforms will boost their sales and reduce their tax burden, resulting in a double advantage. He expressed high expectations from MSMEs and underscored their historic role as the backbone of India’s economy during its peak of prosperity. He noted that India’s manufacturing and product quality were once globally recognized and superior.  Modi emphasized the need to reclaim that pride, urging that products made by small industries must meet the highest global standards. He stated that India’s manufacturing should surpass all benchmarks with dignity and excellence, and that the quality of Indian products must enhance the country’s global identity and prestige. The Prime Minister called upon all stakeholders to work with this goal in mind.

The Prime Minister remarked that just as the mantra of Swadeshi empowered India’s freedom struggle, it will similarly energize the nation’s journey toward prosperity. He highlighted that many foreign items have unknowingly become part of daily life, and citizens often do not even realize whether the comb in their pocket is foreign or indigenous.   Modi emphasized the need to liberate ourselves from such dependence and urged people to buy products that are Made in India, infused with the hard work and sweat of the country’s youth. He called for every household to become a symbol of Swadeshi and every shop to be adorned with indigenous goods. The PM encouraged citizens to proudly declare their commitment to Swadeshi—“I buy Swadeshi,” “I sell Swadeshi”—and stated that this mindset must become intrinsic to every Indian. He asserted that such a transformation will accelerate India’s development. He appealed to all state governments to actively support the Aatmanirbhar Bharat and Swadeshi campaigns by boosting manufacturing in their regions with full energy and enthusiasm, and by creating a conducive environment for investment. He affirmed that when the Centre and states move forward together, the dream of a self-reliant India will be fulfilled, every state will develop, and India will become a developed nation. Concluding his address, the Prime Minister extended warm wishes for the GST Bachat Utsav and the auspicious occasion of Navratri.