Underlining that the mantra of ‘Nagarik Devobhava’ is clearly reflected in the Next Generation GST reforms, the PM highlighted that when the income tax relief and GST reductions are combined, the decisions taken over the past year will result in savings exceeding ₹2.5 lakh crore for the people of India. He affirmed that this is precisely why he calls it a ‘Bachat Utsav’.
NEW DELHI: Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from Monday as reduced GST rates on about 375 items come into effect.
In a bonanza to consumers, the GST Council, comprising Centre and states, decided to reduce tax rates on goods and services, from September 22 — the first day of Navaratri.
In his address to the nation on the eve of rollout of the new reduced tax rates, Prime Minister Narendra Modi said, “GST bachat utsav (savings festival)”, coupled with the hike in income tax exemption to Rs 12 lakh given in the Budget, will be a “double bonanza” for people.
Underlining that the mantra of ‘Nagarik Devobhava’ is clearly reflected in the Next Generation GST reforms, the PM highlighted that when the income tax relief and GST reductions are combined, the decisions taken over the past year will result in savings exceeding ₹2.5 lakh crore for the people of India. He affirmed that this is precisely why he calls it a ‘Bachat Utsav’.
He listed food items, medicines, soap, toothbrushes, toothpaste, health and life insurance among the many goods and services that will either be tax-free or attract only a 5% tax. The Prime Minister further noted that of the items previously taxed at 12%, 99%—virtually all—have now been brought under the 5% tax bracket.
Modi highlighted that under the new structure, only 5% and 18% tax slabs will primarily remain. This, he remarked, means that most everyday-use items will become more affordable.
He emphasized that this festival will enhance savings and make it easier for people to purchase their preferred items. Modi noted that the benefits of this savings festival will reach the poor, middle class, neo middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs alike.
The Prime Minister conveyed best wishes to crores of families across the country for the Next Generation GST reforms and the GST Savings Festival.
He underscored that these reforms will accelerate India’s growth story, simplify business operations, make investments more attractive, and ensure that every state becomes an equal partner in the race for development.
Prime Minister stated that reform is a continuous process, and as times change and national needs evolve, next-generation reforms become equally essential. He emphasized that keeping in view the current requirements and future aspirations of the country, these new GST reforms are being implemented.
Highlighting that in the past eleven years, 25 crore Indians have overcome poverty and emerged as a significant neo middle class segment playing a vital role in the country’s progress, the PM emphasized that this neo middle class has its own aspirations and dreams.
Modi remarked that now it is the turn of the poor and the neo middle class to benefit. He stated that they are receiving a double bonanza—first through income tax relief, and now through reduced GST. The Prime Minister underscored that with lower GST rates, fulfilling personal dreams will become easier for citizens—whether it’s building a house, purchasing a TV or refrigerator, or buying a scooter, bike, or car—all will now cost less.
He added that travel will also become more affordable, as GST on most hotel rooms has been reduced.