- By ANI
- Mon, 22 Sep 2025 07:05 PM (IST)
- Source:ANI
As Goods and Services Tax (GST) 2.0, a significant overhaul of the country's indirect tax system, came into effect from today, Prime Minister Narendra Modi wrote a letter to the Indian citizens, highlighting that the 'GST Bachat Utsav' will boost savings and directly benefit every section of society.
In his letter, PM Modi extended wishes to the countrymen on the occasion of Navratri.
"As the nation celebrates the beginning of Navaratri, I extend heartfelt wishes to you and your families. May this festival bring good health, happiness and prosperity to everyone. 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 highlighted that these reforms will boost savings and directly benefit every section of society, including farmers, women, youth, the poor, middle-class individuals, traders, and MSMEs.
"They will encourage greater growth and investments and accelerate the progress of every state and region," PM Modi wrote in his letter.
"An important feature of the Next Generation GST reforms is that there will mainly be two slabs of 5% and 18%. Daily essentials such as food, medicines, soap, toothpaste, insurance and many more items will now either be tax-free or fall in the lowest 5% tax slab. Goods that were earlier taxed at 12% have almost entirely shifted to 5%. It is greatly heartening to see various shopkeepers and traders putting up 'then and now' boards which indicate taxes pre-reforms and post-reforms," he said.
Furthermore, Prime Minister Modi emphasised that over the last few years, 25 crore people have risen above poverty and formed an aspirational new middle class.
"Further, we have also strengthened the hands of our middle class with the massive income tax cuts, which ensure zero tax up to the annual income of Rs 12 lakh. If we combine the income tax cuts and the Next Generation GST reforms, they add up to savings of nearly Rs 2.5 lakh crore for the people," he wrote.
"Your household expenses will reduce, and it will be easier to fulfil aspirations such as building a home, purchasing a vehicle, purchasing appliances, eating out or planning a family vacation. Now, these new reforms take us further, simplifying the system, reducing rates and putting more savings in the hands of the people," PM Modi wrote.
PM Modi recalled that the introduction of GST in 2017 was a "turning point" in freeing the country from multiple taxes.
"Our nation's GST journey, which began in 2017, was a turning point in freeing our citizens and businesses from the web of multiple taxes. GST united the nation economically. 'One Nation, One Tax' brought uniformity and relief. The GST Council, with the active participation of both the Centre and the States, took many pro-people decisions," he said.
The Prime Minister also mentioned that the country's small industries, shopkeepers, traders, entrepreneurs and MSMEs will also see greater "Ease of Doing Business" and "Ease of Compliance Lower taxes", lower prices and simpler rules will mean better sales, less compliance burden and growth of opportunities, especially in the MSME sector.
"Our collective goal is Viksit Bharat by 2047. To achieve it, walking on the path of self-reliance is imperative. These reforms strengthen our local manufacturing base, paving the way towards Aatmanirbhar Bharat," PM Modi wrote.
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Calling on the countrymen to buy and sell Made in India products, Prime Minister Modi wrote, "On a related note, this festive season, let us also resolve to support products that are Made in India. This means buying Swadeshi products that have the sweat and toil of an Indian involved in their making, irrespective of the brand or the company that makes them."
"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," PM Modi wrote.
He also appealed to shopkeepers and traders to sell products that are Made in India.
"I also urge state governments to encourage industry, manufacturing and improvement of the investment climate. May these reforms bring greater prosperity to every Indian household," PM Modi wrote.
The reform in the Goods and Services Tax (GST) structure was approved during the 56th meeting of the GST Council earlier this month.
The previous four-slab system has been replaced with a streamlined two-slab regime of 5 per cent and 18 per cent. A separate 40 per cent slab has been retained for luxury and sin goods.
(Note: Except for the headline, this article has not been edited by The Daily Jagran and has been published through a syndicated feed. Source - ANI)