New Delhi: Prime Minister Narendra Modi on Sunday unveiled the Next Generation GST reforms, announcing that India will now move to a simplified two-slab structure of 5% and 18%. Addressing the nation via video conferencing on the first day of Navratri, he said the reform marks the beginning of a nationwide ‘GST Bachat Utsav’ (Savings Festival) that will make essential goods and services cheaper and boost savings for households across the country.
Calling the change a “festival of savings,” Modi said the revised GST rates will benefit the poor, middle class, neo middle class, farmers, women, shopkeepers, traders, and entrepreneurs, making everyday items more affordable. Food items, medicines, soap, toothpaste, toothbrushes, and insurance services will either be tax-free or taxed at only 5%, while most other goods will fall under the 18% slab. Nearly 99% of products earlier taxed at 12% have now been shifted to the lower 5% bracket.
The Prime Minister recalled that the introduction of GST in 2017 ended the country’s complex tax regime of excise, VAT, service tax, and multiple levies across states. “GST fulfilled the dream of One Nation, One Tax,” he said, adding that the next-generation reform would accelerate growth, simplify business, attract investment, and ensure equitable participation of all states in development.
Modi noted that when combined with the income tax relief up to ₹12 lakh announced earlier this year, the GST changes would result in savings of over ₹2.5 lakh crore for citizens. “From purchasing houses and vehicles to buying fridges, TVs, or booking hotel rooms—everything will now become more affordable,” he said, lauding shopkeepers for already displaying price comparisons before and after GST reductions.
The Prime Minister also underscored the role of MSMEs and small industries, saying lower tax burdens and simpler processes would boost their sales and strengthen India’s self-reliant economy. He called on citizens to embrace Swadeshi products, declaring: “Every household must become a symbol of Swadeshi. Say it with pride—‘I buy Swadeshi, I sell Swadeshi’.”
Concluding his address, Modi extended warm greetings for Navratri and expressed confidence that the GST Bachat Utsav will usher in a new phase of prosperity and affordability for crores of families across India.
