A nationwide celebration of tax savings begins tomorrow as Prime Minister Narendra Modi announced the launch of “GST Utsav” coinciding with the first day of Navratri. The initiative promises lower prices on everyday items for millions of Indians.
In his address to the nation on Sunday, PM Modi revealed that September 22 marks the implementation of Next Generation GST reforms, describing it as a “festival of savings” for every citizen.
“From tomorrow, you will be able to buy your favourite items with ease. This is like a GST saving festival for every Indian,” the Prime Minister declared during his 5 PM speech.
PM Modi Announces Simplified Tax Structure Takes Effect
The reforms introduce GST 2.0, featuring a streamlined two-slab structure of 5 percent and 18 percent, with an additional 40 percent rate reserved exclusively for super luxury, sin, and demerit goods.
This represents the most significant indirect tax overhaul since GST’s original rollout in July 2017. The new system eliminates complex multiple rates that previously confused businesses and consumers alike.
Wide-Ranging Benefits Announced
PM Modi emphasized that the poor and new middle class will receive “double benefits” from the rate cuts. The reforms directly target common man, farmers, MSMEs, middle-class families, women, and youth demographics.
The government had previously announced these GST rate reductions on September 4, covering an extensive range of products from automobiles to daily consumer necessities.
Cooperative Federalism in Action
“The reforms symbolise the cooperative spirit between the Centre and the states,” PM Modi highlighted, noting the consensus reached at the GST Council’s 56th meeting where both Union and state governments agreed on the changes.
The Prime Minister explained that the decision to implement this new tax structure will make goods cheaper, encourage industry growth, and strengthen India’s overall economy.
Timeline and Implementation
The GST Utsav launch strategically coincides with Navratri festivities, when consumer spending typically increases across the country. Citizens can expect immediate price reductions on their favorite products starting Monday.
This marks a significant policy shift aimed at boosting consumption during the festive season while simplifying India’s indirect tax framework for long-term economic benefits.