Buy Swadeshi, Sell Swadeshi: PM's Made In India Pitch In 'GST Utsav' Letter

Prime Minister Narendra Modi announced on Monday that the next generation GST reforms will enhance savings and provide direct benefits to all segments of society, emphasizing the importance of self-reliance in achieving the vision of Viksit Bharat by 2047.

In an open letter shared on X, PM Modi highlighted that the 'GST Bachat Utsav' or 'GST Savings Festival' has commenced across India from September 22, introducing significant reforms to the tax structure.

"This festive season brings an additional reason for celebration. These reforms will increase savings and directly benefit every section of society, whether farmers, women, youth, poor, middle class, traders or MSMEs. They will foster greater growth and investments and accelerate the progress of every state and region," the Prime Minister stated.

A key aspect of the next generation GST reforms is the simplification to primarily two tax slabs of 5% and 18%. PM Modi explained that daily essentials such as food, medicines, soap, toothpaste, insurance, and many other items will now either be tax-free or fall in the lowest 5% tax bracket. Products previously taxed at 12% have largely shifted to the 5% category.

The Prime Minister expressed satisfaction seeing shopkeepers and traders displaying comparative tax rates from before and after the reforms.

In his letter, Modi noted that 25 crore people have risen above poverty in recent years, forming an aspirational neo-middle class. He added, "We have also strengthened the middle class with substantial income tax cuts, ensuring zero tax up to an annual income of Rs 12 lakh. Combining the income tax reductions and Next Generation GST reforms, people will save nearly Rs 2.5 lakh crore."

"Your household expenses will decrease, making it easier to fulfill aspirations like building a home, purchasing vehicles or appliances, dining out, or planning family vacations," he stated.

Reflecting on the GST journey that began in 2017, Modi described it as a turning point that liberated citizens and businesses from multiple taxes. "GST united India economically. 'One Nation, One Tax' brought uniformity and relief. The GST Council, with participation from both Centre and states, made numerous pro-people decisions. These new reforms further simplify the system, reduce rates, and increase savings for people."

The Prime Minister highlighted that small industries, shopkeepers, traders, entrepreneurs, and MSMEs will experience improved Ease of Doing Business and Ease of Compliance. "Lower taxes, lower prices, and simpler rules will lead to better sales, reduced compliance burden, and growth opportunities, particularly in the MSME sector."

Emphasizing the national goal of Viksit Bharat by 2047, Modi stressed that self-reliance is crucial for achieving this vision. "These reforms strengthen our local manufacturing base, advancing Aatmanirbhar Bharat."

He encouraged citizens to support Made in India products during the festive season: "Let's resolve to support products Made in India. This means buying Swadeshi products created through the effort of Indians, regardless of the brand or company. When you purchase products made by our artisans, workers, and industries, you help families earn their livelihood and create employment for our youth."

Modi urged shopkeepers and traders to sell Made in India products, stating, "Let us proudly say - what we buy is Swadeshi. Let us proudly say - what we sell is Swadeshi."

He also called upon state governments to promote industry, manufacturing, and improve the investment climate.

As Navaratri celebrations begin, the Prime Minister extended his warm wishes to the people. In his social media post with the letter, Modi wrote, "This festive season, let's celebrate the 'GST Bachat Utsav'! Lower GST rates mean more savings for every household and greater ease for businesses."