Prime Minister Narendra Modi has hailed the rollout of India’s next-generation GST reforms, describing them as a step that will benefit every section of society, from farmers and traders to women, youth and the middle class.
In an open letter to citizens on September 22, Modi said lower GST rates would translate into greater household savings and simpler compliance for businesses. “An important feature of the next-generation GST reforms is that there will mainly be two slabs of 5% and 18%. Daily essentials such as food, medicines, soap, toothpaste, insurance and many more items will now either be tax-free or fall in the lowest 5% tax slab. Goods that were earlier taxed at 12% have almost entirely shifted to 5%," he wrote.
The prime minister emphasised that the reforms aim to uplift the aspirational neo-middle class. “In the last few years, 25 crore people have risen above poverty and formed an aspirational neo-middle class. Further, we have also strengthened the hands of our middle class with the massive income tax cuts, which ensure zero tax up to the annual income of Rs 12 lakh," he noted.
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Modi also drew attention to the positive response among shopkeepers and traders, praising those who displayed ‘then and now’ boards comparing pre- and post-reform taxes. “It is greatly heartening to see various shopkeepers and traders putting up ‘then and now’ boards which indicate taxes pre-reforms and post-reforms," he said.
Reiterating his Swadeshi appeal, the prime minister urged retailers to prioritise domestic products. “I appeal to our shopkeepers and traders to sell products that are Made in India. Let us proudly say, what we buy is Swadeshi. Let us proudly say, what we sell is Swadeshi," he wrote.
Highlighting the public enthusiasm, Modi said the reforms have already created a nationwide buzz. “From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home," he posted on X, sharing images of leading newspapers showcasing the GST coverage.
India’s GST 2.0, which took effect on September 22, replaces the earlier four-slab structure with a streamlined two-tier system. It aims to simplify compliance, lower levies on essentials, and support the growth of MSMEs.
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