Prime Minister Narendra Modi on Sunday hailed the next-generation Goods and Services Tax (GST) reforms that will come into effect from September 22, 2025. “From tomorrow, ‘GST Bachat Utsav’ will commence. Your savings will increase and you will be able to buy your favourite things...’GST Bachat Utsav’ will benefit all sections of the society..,” he said in an address to the nation.“In the new form, there will now be only 5% and 18% tax slabs. This means that most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only a 5% tax will have to be paid. Out of the goods which were earlier taxed at 12%, 99% of the items have now come under the slab of 5% tax,” PM Modi said.He expressed confidence that the GST reforms would help accelerate India’s growth story. “Reform is a continuous process. As times change and the country’s needs change, next-generation reforms are equally necessary. These new GST reforms are being implemented, keeping in mind the country’s current needs and future dreams,” he said.“This reform will accelerate India’s growth story, will enhance ease of doing business, make investment easier, give a chance to all states to grow,” he added.
Income Tax relief + GST rate cuts = Double bonanza
PM Modi said that with income up to Rs 12 lakh being tax exempt from this year, and the GSt rate cuts effective from the first day of Navratris, the common people and middle-class of the country will see a double bonanza.“In the last eleven years, 25 crore people in the country have defeated poverty. Having emerged from poverty, a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today. This neo-middle class has its own aspirations and dreams. This year, the government presented a gift by making income up to Rs 12 lakh tax-free and naturally, when income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation, bringing about so much simplicity and convenience...Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams,” he said.“We are moving forward by following the mantra of ‘Nagrik Devo Bhava’ and we can see its reflection in the next generation’s GST reforms. If we combine the income tax exemption and the GST exemption, the decisions made in one year will save the people of the country more than Rs 2.5 lakh crore and that’s why I say, this is a savings festival,” PM Modi added.
Big call for pride in buying ‘Swadeshi’
Stressing on the need for India to be ‘Atmairbhar’, PM Modi urged people to buy ‘Made in India’ products. “MSMEs have a big role to play in making India Atmanirbhar. I have huge expectations from MSMEs,” he said.Calling for world-class products, PM Modi said that the products made in India should be able to pass all stringent global tests. “India’s growth will pick up from this swadeshi mantra. A lot of our day-to-day items are not made in India. We should buy ‘Made in India’ items that have been made with the hard work and toil of our people. Take pride in buying Swadeshi products,” he said.He urged all state governments to take forward the ‘Swadhesi abhiyan’ by giving a boost to manufacturing and creating a conducive environment for investment.
