New Delhi: Prime Minister Narendra Modi addressed the nation today, announcing that the government’s Next Generation GST Reforms will come into effect from 22 September, coinciding with the start of Navratri. Calling it a “GST Savings Festival,” the Prime Minister said the reforms would directly benefit the poor, middle class, neo-middle class, farmers, women, shopkeepers, entrepreneurs, and businesses across the country.
The reforms will reduce tax slabs to just 5% and 18%, simplifying the system and making most daily-use goods and services cheaper. Food items, medicines, soap, toothpaste, insurance and many essentials will either be tax-free or attract only a 5% tax. Almost 99% of goods earlier taxed at 12% have been shifted to the 5% category.
Modi also reminded citizens how, before the introduction of GST in 2017, businesses had struggled with multiple taxes such as octroi, sales tax, excise, VAT and service tax, which created barriers and increased costs. “The dream of One Nation, One Tax became a reality only because of collective efforts of the Centre and states,” he said.
The Prime Minister highlighted that in the last 11 years, 25 crore people have overcome poverty to join the neo-middle class, whose aspirations are now being supported with these reforms. Earlier this year, the government made annual income up to ₹12 lakh tax-free, which, coupled with the GST changes, will result in annual savings of over ₹2.5 lakh crore for citizens.
With GST reduced on items like houses, vehicles, consumer electronics and hotel rooms, the Prime Minister said middle-class families would now find it easier to fulfil their dreams. Shopkeepers, too, are already displaying new prices to pass benefits on to customers.
The Prime Minister stressed that MSMEs, small and cottage industries stand to gain the most, as simplified rules and lower taxes will reduce costs and increase sales. He urged citizens to promote Swadeshi products, stating, “Every home should be a symbol of Swadeshi, every shop should display Swadeshi. When this happens, India will develop rapidly.”
Calling the reform a decisive step towards self-reliance and inclusive development, Modi urged state governments to strengthen manufacturing, improve the investment climate, and join hands with the Centre to accelerate growth.
He concluded his address by extending Navratri greetings and reiterating that the GST Savings Festival would empower every Indian family while driving India closer to the goal of becoming a developed nation.