New Delhi, Sept 21: On the eve of reduced GST rates taking effect, Prime Minister Narendra Modi championed ‘swadeshi’ goods, emphasizing that next-generation GST reforms will supercharge India’s growth, simplify business, and attract investors.
Speaking to the nation on Sunday, Modi announced a ‘GST Bachat Utsav’ (savings festival) starting on the first day of Navratri, paired with income tax exemptions for a “double bonanza” for citizens.
He urged states to drive manufacturing under the ‘Atmanirbhar Bharat’ banner, ensuring equal participation in India’s development race.
“From tomorrow, buying what you love becomes easier benefiting the poor, middle class, youth, farmers, women, traders, and shopkeepers,” Modi said, promising a festive season filled with joy and savings.
The PM 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.
He congratulated all on the next generation GST reforms. “These reforms will accelerate India’s growth story, increase ease of doing business and attract more investors,” Modi said.
When India took a step towards GST reforms in 2017, a new beginning was made to script history, he said.
He said GST realised the ‘one nation-one tax’ dream. Modi highlighted how the web of taxes and tolls had created hardships for businesses and consumers.
Citing income tax exemption on earnings up to Rs 12 lakh and GST reforms, he said it is a “double bonanza” for the poor, neo-middle class, and middle class.
He also said the GST move would benefit MSMEs big time.
Prime Minister Modi 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.
From kitchen staples to electronics, from medicines and equipment to automobiles, goods and services will be cheaper from Monday as the reduced GST rates on about 375 items come into effect.
In a bonanza to consumers, the GST Council, comprising the Centre and states, had decided to reduce the tax rates on goods and services, from September 22 — the first day of the Navaratri.
The GST will now be a two-tier structure wherein the majority of goods and services will attract tax of 5 and 18 per cent. A 40 per cent tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus cess category.
Till now, Goods and Services Tax (GST) was levied in 4 slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.
Mass consumption items like ghee, paneer, butter, ‘namkeen’, ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC and washing machines will become cheaper.
