Next-Gen GST Reforms to Accelerate Growth, Empower MSMEs, and Boost Swadeshi: PM Modi

New Delhi, September 21: Prime Minister Narendra Modi on Sunday announced the rollout of next-generation Goods and Services Tax (GST) reforms, effective from September 22, describing it as the beginning of a nationwide “GST Bachat Utsav” that will bring savings and relief to households, traders, and industries alike.

Addressing the nation via video conferencing, Modi extended Navratri greetings and said the timing marked a “significant step forward in the Aatmanirbhar Bharat campaign.” The reforms will simplify the tax structure, leaving only two primary slabs—5% and 18%—while making essential goods and services cheaper.

“From food items and medicines to insurance, most daily-use goods will either be exempt from GST or taxed at just 5%. Virtually all items previously taxed at 12% have been moved into the lower bracket,” the Prime Minister said.

He highlighted that lower GST rates, coupled with this year’s move to make annual income up to ₹12 lakh tax-free, would generate savings of more than ₹2.5 lakh crore for citizens. “This is why I call it a Bachat Utsav,” he said.

Relief for households and businesses

The reforms are expected to ease costs on big-ticket purchases, including homes, vehicles, and appliances, while also lowering travel expenses as hotel tariffs come under reduced slabs. Modi said citizens would find it easier “to fulfil their dreams—whether it’s buying a refrigerator, scooter, or booking a hotel room.”

For businesses, especially micro, small, and medium enterprises (MSMEs), the simplified GST structure promises reduced compliance and lower tax burdens. “MSMEs are the backbone of our economy, and with reduced GST and simplified processes, their sales and competitiveness will rise,” Modi said, urging the sector to reclaim its historical role in driving India’s prosperity.

A call for Swadeshi and self-reliance

Emphasising self-reliance, the Prime Minister reiterated his call for citizens to prefer indigenous goods. “Whatever meets the needs of our people and can be manufactured in India must be produced domestically,” he said, adding, “Every household should become a symbol of Swadeshi, every shop a showcase of Made in India products.”

He urged citizens to embrace the spirit of ‘Nagarik Devobhava’ (citizens as divine) and called upon state governments to actively support the reforms by boosting local manufacturing.

Reform as a continuous process

Modi framed the new reforms as a continuation of the GST journey launched in 2017, which replaced a complex maze of indirect taxes with the “One Nation, One Tax” framework. He recalled how, before GST, businesses had to navigate multiple levies and checkpoints even for short-distance trade. “The earlier system raised costs for companies and consumers alike. GST freed India from that maze,” he said.

“Reform is a continuous process. As national needs evolve, next-generation reforms are essential,” the Prime Minister asserted, noting that the new structure would accelerate growth, make investments more attractive, and ensure states are equal partners in development.

Concluding his address, Modi wished citizens a joyous Navratri and expressed confidence that the GST reforms would not only improve affordability but also strengthen India’s journey towards becoming a developed nation.