GST Reforms Will Boost Growth, New Middle-Class Rising In India, Says PM

Prime Minister Modi announced two festivals commence tomorrow -- Navratri and GST savings festival

New Delhi:

On the eve of the GST 2.0 reforms rollout, Prime Minister Narendra Modi addressed the nation this evening and declared that two festivals will begin tomorrow -- Navratri and a GST savings festival.

The Prime Minister commenced his anticipated national address by offering Navratri greetings to the country. "Tomorrow, the festival to worship Shakti, Navratri, is starting. My greetings to all of you. On the first day of Navratri, the country is taking a big step towards Atmanirbhar Bharat," he stated.

"Tomorrow, next-generation GST reforms will be rolled out. A GST savings festival is going to begin. Your savings will increase and you can purchase your favorite items with ease," he continued, emphasizing that the poor, middle class, youth, women and traders would significantly benefit from these GST reforms.

"I congratulate crores of Indians over these reforms. These reforms will accelerate Bharat's growth story, enhance ease of doing business, attract greater investment, and ensure that every state becomes an equal partner in the nation's development," the Prime Minister remarked.

The Prime Minister recalled that his government had implemented the "historic" GST initiative in 2017. "For decades, our people were entangled in a web of different taxes. So, we made GST a priority in the national interest. We spoke to every stakeholder and addressed concerns of the states. With the support of all states, this massive tax reform could be implemented," he said.

Reform, he noted, is an ongoing process. "When the time changes, the country's needs change and next-generation reforms are required. Keeping the country's current reforms in mind, new reforms are being implemented," the Prime Minister explained.

GST 2.0 eliminates the tax slabs of 12 percent and 28 percent, maintaining only 5 percent and 18 percent. These two slabs now encompass all items and services, except luxury products or "sin goods".

Daily essentials such as coffee, ghee, biscuits and oil will become more affordable from tomorrow. New cars will cost less, and medical insurance premiums will also decrease. This measure is expected to stimulate public consumption during the festive season.

The Prime Minister described the income tax benefits announced earlier this year and the GST reforms as a "double bonanza". "If we add up the exemption in Income Tax and savings due to GST, the decisions made in the past one year will save Rs 2.5 lakh crores of public money," he stated.

In a significant endorsement for Make in India, the Prime Minister urged, "We have to make every home a Swadeshi symbol, decorate every shop with Swadeshi products. Proudly say, 'I buy Swadeshi, I sell Swadeshi'. This should be every Indian's mood."