GST Reforms To Boost Savings For Every Household: PM

New Delhi- Prime Minister Narendra Modi on Monday said the next generation GST reforms will boost savings and directly benefit every section of society, as he asserted that it is imperative to walk on the path of self-reliance to achieve the collective goal of Viksit Bharat by 2047.

In an open letter to Indians which he posted on X, Modi said that from September 22, 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.

“This year, the festive season brings an added reason to rejoice. These reforms will boost savings and directly benefit every section of society, be it farmers, women, youth, poor, middle class, traders or MSMEs. They will encourage greater growth and investments and accelerate the progress of every state and region,” the prime minister said.

An important feature of the next generation GST reforms is that there will mainly be two slabs of 5 per cent and 18 per cent, he said.

“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,” Modi said in his letter to the people.

In the last few years, 25 crore people have risen above poverty and formed an aspirational neo-middle class, he said.

“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 said.

“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,” the prime minister said.

MENAFN22092025000215011059ID1110095892