Last Updated:September 22, 2025, 00:14 IST

Calling it the beginning of a “Bachat Utsav”, PM Modi said the reforms would not only lighten the burden on households but also will invite investment.

PM Modi addresses the nation. (X)

PM Modi Address Updates: Prime Minister Narendra Modi, in his address to the nation, described the Goods and Services Tax (GST) reforms, which will roll out tomorrow, as a “next-generation reform” that will give a push to India’s economy.

He further said two festivals are set to begin tomorrow: Navratri and a GST Bachat Utsav (GST Savings festival).

“From the first day of Navratri, the country is taking another important step towards an Atmanirbhar Bharat. Starting tomorrow, the next-generation GST reforms will be implemented with the sunrise. The ‘GST Bachat Utsav’ will also begin, which will increase your savings,” PM Modi said.

“This reform is not only about reducing prices but about creating new opportunities. The savings of our middle class will increase, our youth will benefit, and the entire economy will gain momentum,” he added.

PM Modi Slams Previous Tax Regimes

Further highlighting the intricacies in the indirect tax system before the GST was rolled out, the Prime Minister said that for decades, India’s people and traders were entangled in a web of various taxes.

“When India embarked on GST reform in 2017, it marked the beginning of changing history and creating a new one. For decades, our country’s people and our country’s traders were entangled in a web of various taxes.

“Octroi, entry tax, sales tax, excise, VAT, service tax—dozens of such taxes existed in our country. To send goods from one city to another, we had to cross countless checkpoints,” he said.

GST Realised ‘One Nation-One Tax’ Dream

The Prime Minister also highlighted how, before the GST was rolled out, companies used to bear higher costs, while the common man struggled as those expenses were inevitably passed on through cascading levies.

“I remember, in 2014, an interesting incident was published in a foreign newspaper that described the difficulties of a company. The company said that if it had to send its goods from Bengaluru to Hyderabad, 570 km away, it was so difficult that they considered it and said that they would prefer the company to first send its goods from Bengaluru to Europe and then send the same goods from Europe to Hyderabad.”

“Friends, this was the situation at that time due to the complexities of taxes and tolls…At that time, millions of such companies, along with millions of countrymen, faced daily problems due to the maze of various taxes. The increased expenses incurred in transporting goods from one city to another were borne by the poor, and customers like you were charged. It was essential to free the country from this situation,” he added.

PM Modi highlighted that GST was a top priority for his government. He said that by taking all states on board, India’s largest tax reform became possible.

“It was the result of the efforts of the central and state governments that the country was freed from the web of dozens of taxes, and a uniform system was established for the entire country. The dream of ‘One Nation, One Tax’ was realised,” the Prime Minister said.

Reform Is A Continuous Process

PM Modi further said that reform is a continuous process, and as times change and national needs evolve, next-generation reforms become equally essential.

“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,” he said.

He emphasised that keeping in view the current requirements and future aspirations of the country, these new GST reforms are being implemented. He highlighted that under the new structure, only 5% and 18% tax slabs will primarily remain. This, he remarked, means that most everyday-use items will become more affordable.

He listed food items, medicines, soap, toothbrushes, toothpaste, health and life insurance among the many goods and services that will either be tax-free or attract only a 5% tax.

He further noted that of the items previously taxed at 12%, 99%—virtually all—have now been brought under the 5% tax bracket.

He further said that citizens will be able to save Rs 2.5 lakh crore this year due to GST reforms.

25 Crore People Playing Important Role As Neo Middle Class

The Prime Minister pointed out that in the last eleven years, 25 crore Indians had emerged from poverty, forming what he described as a dynamic neo-middle class with aspirations of its own.

He further emphasised on the GST reforms along with the income tax exemption for people earning up to Rs 12 lakh, saying that the poor and the neo-middle class sections of society will receive a “double bonanza” (double happiness) as it will now be easier for them to fulfill their dreams.

“This year, the government presented a gift by making income up to Rs 12 lakh tax-free and naturally, when income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation, bringing about so much simplicity and convenience…Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams…” he said.

He also said that the government is moving forward by following the mantra of Nagrik Devo Bhava

“We are moving forward by following the mantra of Nagrik Devo Bhava, and we can see its reflection in the next generation’s GST reforms,” he said, underscoring the citizen-first philosophy driving the government’s economic policies.

MSME Push

While emphasising that achieving the goal of a developed India requires unwavering commitment to the path of self-reliance, PM Modi stated that a major responsibility in making India self-reliant rests with the MSMEs—India’s micro, small, and cottage industries.

Stressing that MSMEs were the backbone of India’s ‘golden economic years,’ he said GST reforms will empower them again, urging them to manufacture top-quality products that enhance India’s global reputation.

“The reduction in GST rates and the simplification of rules and procedures will greatly benefit our MSMEs, small industries, and cottage industries. Their sales will increase, and they will have to pay less tax, meaning they will also receive a double benefit,” he said.

PM Modi’s Push For Make In India

He also made a strong pitch for promoting ‘swadeshi’ goods and asserted that the next generation GST reforms will accelerate India’s growth story, increase ease of doing business and attract more investors.

He stressed all states will be equal stakeholders in the development race and urged them to give pace to manufacturing with ‘Atmanirbhar Bharat’ and swadeshi campaigns in mind.

urged the people of the country to take pride in selling and buying indigenous goods.

The way the country’s independence got strengthened by the Swadeshi movement, similarly, India’s prosperity will be empowered by the mantra of ‘swadeshi’, he said.

“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,” he said.

The Prime Minister also said that the GST reforms will accelerate the growth story of India as it will make business easier, investments attractive and will support all states in the race for development.

“Tyohaaro ke iss mausam mein sabka muh meetha hoga. Desh ke har pariwar ki khushiya badhegi… I extend my heartfelt congratulations and best wishes to millions of families across the country for the Next Generation GST reforms and ‘Bachat Utsav’. These reforms will accelerate India’s growth story, simplify business, make investment more attractive, and make every state an equal partner in the race for development,” he said.

GST Rationalisation

The GST Council, in its 56th meeting earlier this month, announced a major overhaul in the indirect taxation system, aimed at simplifying the slabs, boosting the consumption and rationalizing the rates.

A new two-tier structure of 5% and 18%, with a demerit rate of 40% reserved for super luxury and sin goods, will come into effect from tomorrow (September 22). The Council, comprising the Union and state governments, unanimously endorsed the reforms.

Consumers will see essential items becoming cheaper from September 22, as several sectors from FMCG to Auto have announced earlier to pass on the benefits of lower GST to them. This is likely to boost consumption during the festive season.

Among the items that will become cheaper due to the GST 2.0 reforms are kitchen staples such as ghee, ketchup, coffee and paneer, electronic appliances and medicines.

(With inputs from agencies)

Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More

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