PM Modi Unveils “GST Savings Festival” as Next-Generation GST Reforms Take Effect from Navratri. 

New Delhi:

In a landmark address to the nation this evening, Prime Minister Narendra Modi announced the rollout of the Next Generation GST Reforms, branding the new tax regime as a “GST Savings Festival” that begins with the onset of Navratri on September 22, 2025. The reforms, which simplify the GST structure and offer substantial tax relief, are positioned as a major boost to consumer savings and India’s economic growth.

 “A Festival of Savings Begins Tomorrow”

“From tomorrow morning, with the rising sun on the first day of Navratri, a new era begins for India’s taxation system,” the Prime Minister said in his televised address. Calling it a “savings festival”, PM Modi highlighted that the restructured GST system would benefit every section of society—including the poor, middle class, youth, farmers, women, and small business owners.

“This means every family will have something sweet to eat during this festive season,” he said, tying the reforms to the spirit of celebration.

Simplified Tax Slabs, Cheaper Essentials

The centerpiece of the reform is the rationalization of GST slabs—reducing the structure to just 5% and 18% brackets, down from the complex multi-tier system that previously existed. According to the PM:

• Most essential goods and services—such as food items, medicines, soaps, brushes, toothpaste, and insurance policies—will now either be tax-exempt or taxed at just 5%.
• Almost 99% of items previously under 12% GST have now been moved to the 5% bracket.
• Hotel stays, appliances, and vehicles will become more affordable, further reducing the cost of living for ordinary citizens.

Dual Relief: GST Cuts + Income Tax Exemption

In a significant move for India’s middle and neo-middle classes, PM Modi reminded the nation of the recent income tax relief under which income up to Rs. 12 lakh has been made tax-free. Combining this with the new GST savings, the Prime Minister estimated that Indians will save more than Rs. 2.5 lakh crore in a year.

“This is not just a tax reform; it is a transformation in how we empower our citizens,” he declared.

Boost for MSMEs and ‘Made in India’

The PM also emphasized the crucial role of MSMEs (Micro, Small, and Medium Enterprises) in India’s vision of a self-reliant economy. The simplified GST regime will:

• Reduce compliance burdens for small businesses,
• Increase sales and competitiveness,
• And strengthen the manufacturing ecosystem within India.

“Whatever our small industries produce should be the best in the world by every standard. That is how India will regain its economic glory,” he said.

He appealed to entrepreneurs to focus on quality and global competitiveness, tying the reforms to a broader Swadeshi movement.

“Buy Swadeshi, Sell Swadeshi”: A Renewed Call

Drawing parallels to the freedom movement’s Swadeshi mantra, PM Modi urged citizens to consciously choose Made in India products in their daily lives.

“Be aware whether the comb in your pocket is Indian or foreign. Let every home, every shop, be a symbol of Swadeshi,” he said, encouraging people to proudly “say it, buy it, and sell it”—Swadeshi.

He also called upon state governments to join this movement by promoting manufacturing and creating investment-friendly environments to build a truly self-reliant India.

Reform with a Vision: One Nation, One Tax

Reflecting on the introduction of GST in 2017, PM Modi recounted the complex maze of taxes—octroi, VAT, excise, and others—that once plagued businesses and consumers alike. The initial rollout was a historic shift, he said, but today’s reforms represent the next crucial step in easing business, enhancing affordability, and driving growth.

Festive Message and Closing

As the nation gears up to celebrate Navratri, PM Modi concluded his address with a message of prosperity and hope:

“To achieve the goal of a developed India, self-reliance is our path. Let this festival not just be a celebration of tradition, but also a celebration of transformation and empowerment. Wishing you all a very happy Navratri and a joyful GST Savings Festival!”

Summary of Key Announcements:

• Next Generation GST Reforms effective from September 22, 2025
• GST simplified to just 5% and 18% slabs
• Essential goods and services mostly tax-free or under 5%
• Income up to Rs. 12 lakh remains tax-free
• Estimated annual savings: Rs. 2.5 lakh crore
• MSMEs to benefit from reduced tax and simplified compliance
• Nationwide push for Swadeshi goods and self-reliant manufacturing.