New Delhi [India], September 22 (ANI): Prime Minister Narendra Modi addressed the nation on Monday as the next-generation Goods and Services Tax (GST) reforms came into effect, calling for greater savings and highlighting benefits for every section of society. In a letter to citizens, he also extended festive greetings on the occasion of Navratri.
“As the nation celebrates the beginning of Navaratri, I extend heartfelt wishes to you and your families. This year, the festive season brings an added reason to rejoice. From September 22nd, the Next Generation GST reforms have begun to make their presence felt, marking the start of a ‘GST Bachat Utsav’ or ‘GST Savings Festival’ across the country,” PM Modi wrote.
The Prime Minister emphasized that the reforms will benefit farmers, women, youth, the poor, middle-class individuals, traders, and MSMEs, while promoting growth and investments across states and regions. A key feature of the overhaul is the simplification of tax slabs to primarily 5% and 18%. Daily essentials such as food, medicines, soap, toothpaste, and insurance will either be tax-free or fall under the 5% slab, while goods previously taxed at 12% have largely shifted to 5%.
PM Modi highlighted the impact of reforms on household finances, noting that combined with recent income tax cuts, the reforms could result in nearly Rs 2.5 lakh crore in savings for citizens. “Your household expenses will reduce, and it will be easier to fulfil aspirations such as building a home, purchasing a vehicle, or planning a family vacation,” he wrote.
Recalling the introduction of GST in 2017, the Prime Minister described it as a turning point that united India economically and reduced the burden of multiple taxes. He also emphasized the benefits for small industries, shopkeepers, traders, entrepreneurs, and MSMEs, pointing to lower taxes, simplified rules, and enhanced ease of doing business.
Highlighting the path toward self-reliance, PM Modi called on citizens to support Made in India products. “Every time you buy a product made by our own artisans, workers, and industries, you are helping many families earn their living and creating job opportunities for our youth,” he said, urging state governments to foster industrial growth and investment.
The GST reform, approved during the 56th GST Council meeting earlier this month, replaces the previous four-slab system with a streamlined two-slab regime of 5% and 18%, while retaining a 40% slab for luxury and sin goods. (ANI)
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