This festive season, let's celebrate the 'GST Bachat Utsav'! Lower GST rates mean more savings for every household and greater ease for businesses. pic.twitter.com/QOUGWXrC3d
— Narendra Modi (@narendramodi) September 22, 2025
"As the nation celebrates the beginning of Navaratri, I extend heartfelt wishes to you and your families. May this festival bring good health, happiness and prosperity to everyone. This year, the festive season brings an added reason to rejoice. From September 22nd, the Next Generation GST reforms have begun to make their presence felt, marking the start of a 'GST Bachat Utsav' or 'GST Savings Festival' across the country," PM Modi wrote.
"These reforms will boost savings and directly benefit every section of society, be it farmers, women, youth, poor, middle class, traders or MSMEs. They will encourage greater growth and investments and accelerate the progress of every state and region," he added.
The open letter comes after the rollout of the next-generation GST reforms, which came into effect on Monday, officially launching what he described as the ‘GST Bachat Utsav’.
The GST 2.0 overhaul aims to simplify the tax system and significantly reduce the financial burden on households, businesses, and farmers, providing timely relief ahead of the festive season.
In his letter, PM Modi emphasised that the most important feature of the new GST framework is the shift to a two-rate structure of 5% and 18%, replacing the earlier four-slab system. Under this simplified model, a wide range of daily essentials — including food items, medicines, soaps, toothpaste, and insurance — are now either tax-exempt or placed in the lowest 5% slab. Goods previously taxed at 12% have mostly moved to the 5% category, further increasing savings for consumers.
PM Modi also noted the rise of an aspirational neo-middle class, stating that in recent years, 25 crore people have moved out of poverty, and these reforms are designed to empower them economically.
"If we combine the income tax cuts and the Next Generation GST reforms, they add up to savings of nearly Rs 2.5 lakh crore for the people. Your household expenses will reduce and it will be easier to fulfill aspirations such as building a home, purchasing a vehicle, purchasing appliances, eating out or planning a family vacation," PM Modi said.
"Our nation's GST journey, which began in 2017, was a turning point in freeing our citizens and businesses from the web of multiple taxes. GST united the nation economically. 'One Nation, One Tax' brought uniformity and relief. The GST Council, with the active participation of both Centre and States, took many pro-people decisions. Now, these new reforms take us further, simplifying the system, reducing rates and putting more savings in the hands of the people," he added.
He also reiterated the Centre’s vision of “Viksit Bharat by 2047”, emphasising that achieving this goal requires a firm commitment to self-reliance.
The latest GST reforms, he said, strengthen India’s local manufacturing base and are a crucial step toward building an Aatmanirbhar Bharat. PM Modi also urged citizens to actively support and choose Made-in-India products, underlining their role in driving national growth.
"I appeal to our shopkeepers and traders to sell products that are Made in India. Let us proudly say - what we buy is Swadeshi. Let us proudly say - what we sell is Swadeshi. I also urge state governments to encourage industry, manufacturing and improvement of the investment climate. Once again, I wish you and your families a joyous Navaratri and a season full of happiness and savings through the 'GST Savings Festival'," PM Modi added.
On Sunday, the prime minister addressed the nation on the eve of the new GST rates roll-out from the first day of Navratri, lauding it as the "GST Bachat Utsav" for shoppers as prices of a wide array of items have gone down.
With inputs from agencies
