Prime Minister Narendra Modi on Monday hailed the Goods and Services Tax (GST) reforms, which are being rolled out today, saying that they will brighten smiles in every home.
“From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home!” PM Modi wrote on X as he shared front-page coverage in newspapers of the reforms.
The GST reforms or GST rate cuts came into effect on Monday, September 22, the first day of the Navratri festival. Under the GST reforms, the previous four-tiered tax rate structure has been revised into what the government says is a citizen-friendly ‘simple tax’ – a two-rate structure of 18 per cent and five per cent.
Until now, GST was applied across four slabs — 5%, 12%, 18%, and 28% — along with a compensation cess on luxury and “sin” goods.
Also Read | New GST rates in effect: 10 things you need to know about PM’s ‘Bachat Utsav’
In an address to the nation on Sunday evening, Modi said that Indians will save ₹2.5 lakh crore due to the GST rate changes and income tax changes announced earlier this year.
“People will now be able to save more and buy what they like. With these reforms the youth, farmers, women, shopkeepers, traders, entrepreneurs will all be able to benefit from this Bachat Utsav (savings festival). Everyone will have something to feel happy about in this festive season,” Modi had said.
Also Read | New GST rates: Full list of items under new tax slabs
He highlighted that the reduction in GST rates would allow MSMEs and small traders to make profits. “Their sales will go up and they will have to pay less tax. It will be a double bonanza for them as well,” he said, adding that he had “a lot of expectations” from the sector.
Modi also called for a renewed push towards Indian-made goods, saying that the country will make progress only when Indians buy Indian-made goods with pride
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