Prime Minister Narendra Modi announced on Monday, September 22, 2025, that India is entering a new phase of Goods and Services Tax (GST) reforms. He emphasized that these changes are designed to significantly increase savings for everyone and directly benefit every segment of society. The Prime Minister underscored the vital importance of national self-reliance as India strives towards the ambitious goal of becoming a developed nation, or ‘Viksit Bharat,’ by 2047.
In a public letter shared on X, Prime Minister Modi highlighted that these next-generation GST reforms, effective from September 22, are ushering in what he termed a ‘GST Bachat Utsav’ – a nationwide festival of savings. This initiative, he noted, marks a crucial step towards economic self-reliance for all citizens and businesses.
The Prime Minister expressed his enthusiasm, stating, "This year, the festive season offers an extra reason to celebrate." He affirmed that these reforms are set to enhance savings and provide direct advantages to all parts of society, including farmers, women, youth, the underprivileged, the middle class, traders, and Micro, Small, and Medium Enterprises (MSMEs). Furthermore, these changes are expected to stimulate economic growth and investment, thereby accelerating development across every state and region.
A key aspect of these updated GST reforms, he noted, is the simplification of the tax structure, primarily featuring two main slabs: 5% and 18%.
In his letter, Mr. Modi explained that everyday necessities like food, medicines, soap, toothpaste, and insurance will now either be exempt from tax or fall under the minimal 5% tax bracket. He highlighted that most goods previously subject to a 12% tax rate have now been moved to the 5% slab. The Prime Minister shared his delight at seeing shopkeepers display ‘then and now’ boards, clearly illustrating the tax reductions for consumers.
He proudly mentioned that over the past few years, 250 million people have successfully emerged from poverty, contributing to the rise of a vibrant, aspiring neo-middle class in India.
Additionally, the Prime Minister pointed out that significant income tax reductions have bolstered the middle class, allowing zero tax on annual incomes up to ₹12 lakh. When combined, these income tax cuts and the latest GST reforms are projected to result in total savings of approximately ₹2.5 lakh crore for the Indian populace.
These measures, he assured, will lower household expenses, making it simpler for families to achieve aspirations such as owning a home, buying a vehicle or appliances, enjoying meals out, or planning family vacations.
Reflecting on India’s GST journey, which commenced in 2017, Mr. Modi stated that it marked a pivotal moment in liberating citizens and businesses from the complexities of numerous taxes. He asserted that GST successfully unified the nation’s economy.
The principle of ‘One Nation, One Tax’ introduced consistency and relief across the country. He credited the GST Council, with its strong collaboration between the central and state governments, for enacting many decisions that prioritized the public. Now, these latest reforms aim to streamline the system further, lower rates, and ultimately put more money back into people’s pockets.
For small industries, shopkeepers, traders, entrepreneurs, and MSMEs, these reforms are expected to lead to improved Ease of Doing Business and simplified compliance. The combination of reduced taxes, lower prices, and clearer regulations is anticipated to drive increased sales, lighten the burden of compliance, and foster new growth opportunities, particularly within the MSME sector.
Reiterating that the shared ambition of the Indian people is to achieve a ‘Viksit Bharat’ (Developed India) by 2047, Mr. Modi stressed that pursuing self-reliance is absolutely essential to reach this monumental goal.
He affirmed that these reforms will fortify India’s domestic manufacturing capabilities, thus accelerating the nation’s journey towards ‘Aatmanirbhar Bharat’ (Self-Reliant India).
In a related appeal, the Prime Minister urged everyone during the festive season to commit to supporting ‘Made in India’ products. He defined this as purchasing ‘Swadeshi’ goods, which represent the hard work and dedication of Indian individuals, regardless of the specific brand or company.
Mr. Modi emphasized that every purchase of products crafted by Indian artisans, workers, and industries contributes significantly to supporting countless families and generating employment opportunities for the nation’s youth.
He also encouraged shopkeepers and traders to prioritize selling products that are proudly ‘Made in India’.
The Prime Minister’s message was clear: "Let us proudly declare, what we buy is Swadeshi. Let us proudly declare, what we sell is Swadeshi."
Furthermore, he called upon state governments to actively promote industry, boost manufacturing, and enhance the overall investment environment.
Mr. Modi concluded by extending his heartfelt wishes for a joyous Navratri and a season brimming with happiness and savings, all thanks to the ‘GST Savings Festival.’
This festive season, let’s celebrate the ‘GST Bachat Utsav’! Lower GST rates mean more savings for every household and greater ease for businesses. pic.twitter.com/QOUGWXrC3d
— Narendra Modi (@narendramodi) September 22, 2025
Sharing his letter on X, Mr. Modi reiterated his call to "celebrate the ‘GST Bachat Utsav’ this festive season," emphasizing that reduced GST rates translate to greater savings for families and smoother operations for businesses. He also drew attention to the extensive and positive media coverage of the GST rate reductions, highlighting the widespread excitement they had generated across the nation.
On X, Mr. Modi further stated that the ‘GST Bachat Utsav’ is creating a celebratory atmosphere from local markets to individual homes, promising reduced costs and increased happiness for everyone. He shared images of front-page newspaper articles from prominent Hindi and English dailies, showcasing the positive impact.
He also shared a video clip of his engagement with traders during a visit to Arunachal Pradesh, affirming that these interactions vividly demonstrate India’s profound optimism surrounding the ‘GST Bachat Utsav’.
At a rally in Itanagar, he declared, "Today, next-generation GST reforms have been implemented nationwide, commencing the ‘GST Bachat Utsav.’ During this festive period, the public has received a wonderful double benefit."
Mr. Modi specifically highlighted that the GST reforms are expected to ease household budgets, particularly benefiting women by reducing kitchen expenses.
On Sunday, September 21, 2025, the Prime Minister addressed the nation just before the new GST rates came into effect on the first day of Navratri. He hailed this move as the ‘GST Bachat Utsav’ for consumers, celebrating the reduction in prices for a diverse range of goods.