In an open letter to citizens, Prime Minister Narendra Modi praised the start of the ‘GST Bachat Utsav,’ marking a new era of savings for households and businesses. This initiative coincides with the introduction of advanced GST reforms. Extending his wishes for Navaratri, the Prime Minister stated that these reforms offer ‘an added reason to rejoice’ during the festive season. He emphasized that reduced GST rates will result in more savings for every household and provide greater ease for businesses. Modi noted that the reforms will benefit various segments of society, including farmers, women, youth, the underprivileged, the middle class, traders, and MSMEs. The revamped GST structure simplifies taxation to primarily two rates — 5% and 18%.
Essential items such as food, medicines, soap, toothpaste, and insurance will either be exempt from tax or fall under the 5% rate, with many goods previously taxed at 12% now shifting to 5%. Modi claimed that when paired with recent income tax reductions, the GST reforms could yield savings of nearly Rs 2.5 lakh crore for citizens. He mentioned that household expenses will decrease, making it easier to pursue aspirations like home ownership, vehicle purchases, buying appliances, or planning vacations. Since the GST’s implementation in 2017, it has unified India’s economy under the ‘One Nation, One Tax’ framework. He asserted that the latest reforms will further lower rates and increase savings for the populace.
The Prime Minister pointed out that 25 crore individuals have escaped poverty in recent years, creating a new aspirational middle class, and that these reforms will promote growth, attract investments, and bolster local manufacturing. Reaffirming the vision of Viksit Bharat by 2047, he emphasized the importance of self-reliance and urged citizens to support Made in India products.
