PM Modi ushers in 'GST bachat utsav', makes strong 'swadeshi' pitch to citizens

PM Modi addresses the nation

Prime Minister Narendra Modi on Sunday congratulated the people on the "GST bachat utsav"

(GST savings festival) beginning September 22 — the first day of Navratri — saying that it will accelerate growth and bring joy to every family.

In a televised address to the nation, PM Modi said that India will take an important step towards Atmarnirbhar Bharat from the first day of Navratri.

"On the first day of Navratri, September 22, next-generation GST reforms will be implemented. From tomorrow, India will mark the GST bachat utsav. This will lead to bigger savings and people will be able to purchase things easily," he said.

The Prime Minister said that all sections of the society will benefit from the new reforms, which will bring joy to each household. "I congratulate people on this bachat utsav. This will accelerate our growth story and attract investments."

The Prime Minister said that GST, first rolled out in 2017, has not only simplified India’s indirect tax regime but also delivered major savings for the poor, middle class and neo-middle class.

“People were embroiled in a web of taxes prior to the GST reforms,” the Prime Minister said, recalling how difficult intra-country trade was before 2017. “When I became PM in 2014, a foreign publication had published an article on problems related to intra-country trade. It was easier to send goods to Europe and get them re-imported than to send goods from one state to another.”

He said that the burden of the old tax system ultimately fell on ordinary people. “Poor paid for these systems, consumers were made to pay for these taxes,” he said.

The Prime Minister noted that implementing GST had been made a priority for his government. “We have resolved all issues raised by states. We brought all stakeholders to bring out the tax reform,” he said, underlining that reform is an ongoing process.

“Reform is a continuous process. We need next generation reforms with changing times. This reform has been done keeping in mind the future needs of the nation.”

The Prime Minister said that starting tomorrow, India will have only two tax rates of 5 and 18 percent. "Most everyday items will become cheaper. 99% of items attracting 12 percent tax have been moved to 5 percent bracket," he said.

He also pointed to the government’s broader social impact, claiming significant progress in poverty reduction. “25 crore people have been able to come out of poverty over the last 11 years to emerge as neo-middle class,” Modi said.

Emphasising the government’s focus on the new segment of society, he added: “This neo-middle class has its own aspirations and dreams, we have also exempted Rs 12 lakh income from tax bracket. This is expected to make a big difference to middle class. We are delivering double bonanza to neo-middle class, middle class and poor.”

PM Modi added the reforms were also benefiting the travel and hospitality sector. “Even travel will become cheaper, as most hotel rooms now attract lower GST rate,” he said.

He said that people will be able to save a whopping Rs 2.5 lakh crore this year due to the GST reforms and the income tax cuts announced by his government earlier this year during Union Budget.

Atmanirbhar push

The Prime Minister also gave another clarion call for atnmanirbharta (self-reliance), exhorting every Indian, from the common man to MSMEs, to produce and purchase made-in-India products.

He said that he has many expectations from the MSMEs, who were the contributors to the economy during India’s golden years. "We need to return to that age," he added.

The Prime Minister said that we must buy made-in-India products and make every household a "symbol of swadeshi".

"When we are able to do this, we will move fast towards becoming a developed country. I request state governments to push manufacturing and made in India. We need to create opportunities for investment," he said.

He said India must be recognised globally for top-quality products, stressing that the country’s development requires the swadeshi mantra, just as swadeshi played a vital role in the freedom struggle.

GST 2.0 from September 22

The revised GST rates come into effect starting September 22, bringing significant relief for the common man.

As per the revamped structure, there will be only two slabs - 5% and 18% with the Centre doing away with 12% and 28% categories. The tax revamp moves 99% of the goods in 12% GST slab to 5% and 90% of the items in the 28% slab to 18%. However, sin goods including tobacco products and cigarettes will continue to attract 28%.

During his address on the Independence Day this year, PM Modi said that the next-generation GST reforms will be "a Diwali gift" for the people.