- GST Bachat Utsav begins 22nd Sept 2025 with simplified 5% and 18% tax slabs.
- Essential goods and services are cheaper – food, medicines, insurance, household items.
- Combined tax reliefs save Indians ₹2.5 lakh crore annually.
- MSMEs and small industries gain from reduced burden and higher competitiveness.
- Strong call for Aatmanirbhar Bharat and Swadeshi products to boost domestic manufacturing.
- Citizens urged to adopt the mantra: “I buy Swadeshi, I sell Swadeshi.”
Prime Minister Narendra Modi addressed the nation on 21st September 2025 via video conferencing, extending warm Navratri greetings and announcing a landmark step in India’s tax system. Starting 22nd September, the country will implement the Next-Generation GST Reforms, which the PM described as the beginning of a ‘GST Bachat Utsav’ (Savings Festival).
The reforms simplify GST by retaining only two main slabs – 5% and 18%, making most essential items cheaper for citizens. PM Modi highlighted that this move will reduce expenses for households, support small businesses, and accelerate India’s growth story.
He emphasized that the benefits of reduced GST rates and income tax relief together will save Indians over ₹2.5 lakh crore annually, directly benefiting the poor, middle class, neo-middle class, women, youth, farmers, shopkeepers, traders, and entrepreneurs.
PM Modi recalled the pre-GST era, when multiple taxes like Octroi, VAT, and Service Tax created hardships. He noted that since the rollout of GST in 2017, India has moved toward the dream of ‘One Nation, One Tax’, and these new reforms are the next big step.
The PM also called on citizens to support the Aatmanirbhar Bharat and Swadeshi (Made in India) campaigns by choosing indigenous products. He said that MSMEs and cottage industries will gain a double advantage—higher sales and lower tax burdens—strengthening India’s economy.
Concluding his address, PM Modi urged every Indian to adopt the mantra “I buy Swadeshi, I sell Swadeshi”, assuring that collective effort will make India a developed and self-reliant nation.
Extended Highlights from PM Modi’s Address
Stressed that when Centre and states work together, the dream of a developed, self-reliant India will be fulfilled.
Journey of GST (2017–2025):
- Before GST, citizens faced dozens of taxes like Octroi, VAT, Excise, Entry Tax, and Service Tax.
- Moving goods between cities meant multiple forms, checkpoints, and delays.
- PM recalled a foreign newspaper example (2014): shipping goods from Bengaluru to Hyderabad (570 km) was harder than sending them to Europe and back.
End of Tax Complexities:
- GST introduced in 2017 realized the dream of One Nation, One Tax.
- Extensive consultations with states and stakeholders helped make it possible.
Next-Generation GST (2025):
- Only 5% and 18% slabs remain, making everyday-use goods cheaper.
- 99% of items earlier taxed at 12% are now at 5%.
- Food, medicines, toothpaste, soap, and insurance are now largely in 5% bracket.
- Vehicles (scooters, bikes, cars), appliances (TVs, fridges), and hotel stays also become more affordable.
Direct Citizen Benefits:
- Income tax relief earlier this year (income up to ₹12 lakh tax-free).
- Combined with GST cuts → ₹2.5 lakh crore savings for Indians.
- Boosts aspirations of the 25 crore people who rose from poverty into the neo-middle class in the last 11 years.
Support for MSMEs & Small Industries:
- Reduced GST lowers costs and boosts sales.
- MSMEs, cottage industries, and small businesses get a double advantage.
- PM said India’s manufacturing must meet global standards to regain past economic pride.
Swadeshi Push:
- PM highlighted how many foreign products unknowingly enter daily life—even a simple comb.
- Urged Indians to consciously buy Made-in-India goods.
- Called for every household and shop to become a symbol of Swadeshi.
States’ Role:
PM appealed to states to actively encourage investment and support self-reliance.
Key Highlights in Table Form
| Announcement / Point | Details |
|---|---|
| Date of Implementation | From sunrise, 22nd September 2025 |
| Event Name | GST Bachat Utsav (Savings Festival) |
| New GST Structure | Only 2 slabs remain – 5% and 18% |
| Items under 5% GST | Food items, medicines, soap, toothbrushes, toothpaste, insurance, and more |
| 99% of 12% items shifted | Now under 5% GST |
| Impact on Citizens | Everyday goods and services become cheaper, more savings for households |
| Tax Relief | Income up to ₹12 lakh made tax-free earlier this year + GST cuts now |
| Total Savings | Over ₹2.5 lakh crore annually |
| Beneficiaries | Poor, middle class, neo middle class, women, youth, farmers, shopkeepers, traders, entrepreneurs |
| Support to MSMEs | Reduced tax burden + boost in sales |
| Self-Reliance Push | Appeal to buy and sell Swadeshi products |
| Festive Season Link | Extended Navratri greetings; reforms launched on the 1st day of Navratri |
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