Srinagar, Sep 21 (JKNS): Prime Minister Narendra Modi on Sunday announced that next-generation Goods and Services Tax (GST) reforms will come into effect from tomorrow, coinciding with the first day of Navratri.
Addressing the nation, PM Modi, as per news agency JKNS said, “From tomorrow, India will implement next-generation GST reforms under which there will primarily be two tax slabs of 5 per cent and 18 per cent. Most daily use items will become more affordable for citizens.”
He added that food items, medicines, soaps, brushes, toothpaste, health insurance, and life insurance will either be tax-free or attract only 5 per cent tax. “Out of the goods which were earlier taxed at 12 per cent, 99 per cent of the items have now come under the slab of 5 per cent,” he said.
PM Modi also announced the launch of a nationwide “GST Bachat Utsav” or savings festival starting from the first day of Navratri. “From tomorrow, the GST Savings Festival is going to begin across the country. Your savings will increase, and you will be able to easily buy the things of your choice. The poor, middle class, shopkeepers, farmers, youth, women, and entrepreneurs will all benefit from the new tax structure,” he said.
Speaking about the broader impact of the reforms, the Prime Minister said, “In the last eleven years, 25 crore people in the country have moved out of poverty and are now part of the ‘neo-middle class’. This group has its own aspirations and will gain significantly from both GST simplification and recent income tax relief. This year, the government presented a gift by making income up to Rs 12 lakh tax-free. When income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation.”
PM Modi recalled the pre-GST era, saying, “For decades, the people of our country, traders, and businesses were trapped in the web of multiple taxes Octroi, entry tax, sales tax, excise, VAT, service tax, so many kinds of taxes existed. At that time, even moving goods between cities was complicated and expensive.”
He cited an example of a company that found it easier to send goods from Bengaluru to Europe and then ship them back to Hyderabad, rather than deal with tax barriers between states. “The introduction of GST in 2017, after consultations with all states and stakeholders, ended the system of multiple taxes and checkpoints. By taking every state and everyone along, such a big tax reform became possible in independent India. The dream of ‘One Nation, One Tax’ to create a unified system across the country was fulfilled,” he said.
PM Modi further said that the new reforms will simplify business, make investment more attractive, and ensure that all states equally participate in India’s growth story. (JKNS)
