New Delhi, Sep 22: Prime Minister Narendra Modi on Monday said the next generation of GST reforms will directly benefit every section of society by boosting savings and easing the cost of living, while also strengthening the path towards Viksit Bharat by 2047.
In an open letter posted on X, Modi said the reforms, effective from September 22, mark the beginning of a nationwide “GST Bachat Utsav” (GST Savings Festival).
“These reforms will benefit farmers, women, youth, the poor, middle class, traders and MSMEs. They will spur growth, investments and opportunities across the country,” he said.
A key feature of the reforms is the simplification of tax slabs to mainly 5% and 18%. Daily essentials like food, medicines, soaps, toothpaste and insurance will now either be tax-free or fall under the 5% slab. Goods earlier taxed at 12% have largely shifted to 5%.
Modi highlighted that, along with recent income tax cuts ensuring zero tax up to ₹12 lakh annual income, the reforms together will save people nearly ₹2.5 lakh crore.
“Household expenses will reduce, making it easier to build a home, buy a vehicle or plan a vacation,” he said.
Calling GST a landmark reform since 2017 that brought “One Nation, One Tax”, Modi said the new measures further simplify compliance, reduce rates, and support MSMEs with better ease of business.
He urged people to support Aatmanirbhar Bharat by buying Swadeshi products this festive season. “Every Made-in-India purchase strengthens local industries and creates jobs for our youth,” he said.
Extending greetings for Navaratri, Modi appealed to shopkeepers and traders to proudly promote and sell Indian products.
