NEW DELHI: Prime Minister Narendra Modi on Monday said the next-generation GST reforms will boost savings and directly benefit all sections of society, emphasizing that self-reliance is essential to achieve the collective vision of a Viksit Bharat by 2047.
In an open letter to citizens posted on X, Modi announced that from September 22, the new GST reforms have begun taking effect, marking the launch of a nationwide ‘GST Bachat Utsav’ (GST Savings Festival).
“This festive season brings an added reason to celebrate. These reforms will increase savings and benefit everyone—farmers, women, youth, the poor, middle class, traders, and MSMEs. They will encourage growth, boost investment, and accelerate development in every state and region,” the Prime Minister said.
A key feature of the reforms is the introduction of two main tax slabs—5% and 18%. Daily essentials such as food, medicines, soap, toothpaste, and insurance will now either be tax-free or fall under the lowest 5% slab. Items previously taxed at 12% have largely moved to 5%. Modi highlighted that many shopkeepers are displaying “Then and Now” boards to showcase the impact of the reforms.
Pointing to recent economic progress, he said, “In the last few years, 25 crore people have moved above the poverty line, forming an aspirational neo-middle class. We have also strengthened our middle class through significant income tax cuts, ensuring zero tax up to an annual income of ₹12 lakh. Together, income tax cuts and the next-generation GST reforms will bring nearly ₹2.5 lakh crore in savings to the people.”
He added, “These reforms will reduce household expenses, making it easier to achieve aspirations such as building a home, buying a vehicle, purchasing appliances, dining out, or planning family vacations.”
Reflecting on the GST journey since 2017, Modi said it marked a turning point in freeing citizens and businesses from multiple taxes. “‘One Nation, One Tax’ brought uniformity and relief. The GST Council, with active participation from the Centre and states, has made many pro-people decisions. The new reforms simplify the system, lower rates, and put more savings into the hands of the people.”
Small industries, shopkeepers, traders, entrepreneurs, and MSMEs are expected to benefit from easier compliance and better business opportunities. Lower taxes and simpler rules will boost sales and reduce the compliance burden, particularly for MSMEs.
Stressing the collective goal of achieving a Viksit Bharat by 2047, Modi said these reforms also strengthen local manufacturing, paving the way for an Aatmanirbhar Bharat. He urged citizens to support Made in India products, emphasizing that buying Swadeshi goods creates livelihoods and job opportunities for Indian artisans, workers, and industries.
He also called on shopkeepers and traders to promote Indian-made products, saying, “Let us proudly say—what we buy is Swadeshi. Let us proudly say—what we sell is Swadeshi.” He further encouraged state governments to foster industry, manufacturing, and a better investment climate.
As the nation celebrates Navaratri, Modi extended his greetings, saying, “This festive season, let’s celebrate the ‘GST Bachat Utsav’! Lower GST rates mean more savings for households and greater ease for businesses.”
