New Delhi: A day ahead of the rollout of the new GST regime, Prime Minister Narendra Modi addressed the nation and hailed the ‘GST bachat utsav’, or festival of savings.
“From tomorrow, the festival of Navratri is starting. I extend my best wishes to you. From the first day of Navratri, the country is taking an important step towards Aatmanirbhar Bharat. Tomorrow, on the first day of Navratri, next-generation GST reforms will come into effect,” Modi said.
“From tomorrow, ‘GST bachat utsav’ will commence in our nation. Your savings will increase and you will be able to buy your favourite things… ‘GST bachat utsav’ will benefit all sections of the society, and will accelerate Bharat’s growth story, simplify business, make investment more attractive, and make every state an equal partner in the race for development.”
The GST Council earlier this month approved a two-tier rate system of 5 per cent and 18 per cent, which will take effect from September 22.
As Modi pointed out, nearly 99 per cent of goods once taxed at 12 per cent will now fall under the 5% bracket, while around 90 per cent of items earlier under the 28 per cent slab will move down to 18 per cent.
During his 19-minute speech, the Prime Minister said the GST reforms will result in a ‘double bonanza’ for the poor, the neo-middle class and the middle class.
“In the last eleven years, 25 crore people in the country have defeated poverty. Having emerged from poverty, a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today. This neo-middle class has its own aspirations and 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,” Modi explained.
The PM said the Central government’s twin decisions — income tax relief and GST reforms — would help people of the country save over Rs 2.5 lakh crore in a year.
“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.
The Prime Minister said the GST simplification 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 repeated his ‘swadeshi’ pitch. “Let us buy goods that are made in India… that carry the hard work of our youth… that hold the sweat and effort of our sons and daughters. What the people of the country need… what we can produce within the country… we should produce it here itself.”