Fulfilling dreams will become easier: PM Narendra Modi on ‘GST reforms’

New Delhi: Prime Minister Narendra Modi addressed the nation via video conferencing on Sunday and said that the government's recent reduction in GST rates will ease financial burdens on citizens, making houses, vehicles, and consumer goods more affordable.

He said reduced GST rates will ease costs on essentials like homes, vehicles, and household items, marking the launch of a nationwide 'GST Bachat Utsav'. He called the reforms a major step towards Aatmanirbhar Bharat and inclusive growth.

The Prime Minister underscored that "with lower GST rates, fulfilling personal dreams will become easier for citizens--whether it's building a house, purchasing a TV or refrigerator, or buying a scooter, bike, or car--all will now cost less." He added that travel will also become more affordable, as GST on most hotel rooms has been reduced.

PM Modi expressed happiness over the enthusiastic response of shopkeepers towards the GST reforms. He noted that "they are actively working to pass on the benefits of GST reductions to customers." The Prime Minister highlighted that in many places, boards displaying price comparisons--before and after the reforms--are being prominently displayed.

Beginning at sunrise on September 22, the country will implement Next Generation GST reforms. The Prime Minister highlighted that this marks the beginning of a 'GST Bachat Utsav' (Savings Festival) across India.

He noted that this festival "will enhance savings and make it easier for people to purchase their preferred items." PM Modi noted that the benefits of this savings festival will reach the poor, middle class, neo-middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs alike.

He remarked that in this festive season, every household will experience increased happiness and sweetness. Extending his congratulations, the Prime Minister conveyed best wishes to crores of families across the country for the Next Generation GST reforms and the GST Savings Festival.

He underscored that these reforms will accelerate India's growth story, simplify business operations, make investments more attractive, and ensure that every state becomes an equal partner in the race for development.

Recalling that India took its first steps towards GST reform in 2017, marking the end of an old chapter and the beginning of a new one in the country's economic history, PM Modi highlighted that for decades, citizens and traders were entangled in a complex web of taxes--Octroi, Entry Tax, Sales Tax, Excise, VAT, and Service Tax--amounting to dozens of levies across the nation.

The Prime Minister pointed out that transporting goods from one city to another required crossing multiple checkpoints, filling numerous forms, and navigating a maze of differing tax rules at every location. He shared a personal memory from 2014, when he assumed office as Prime Minister, mentioning a striking example published in a foreign newspaper.

The Prime Minister remarked that such were the conditions due to the entanglement of taxes and tolls. He reiterated that the earlier example was just one among countless instances. He highlighted that lakhs of companies and crores of citizens faced daily hardships because of the complex web of multiple taxes.

PM Modi stated that the increased cost of transporting goods from one city to another was ultimately borne by the poor and recovered from customers like the general public.

Emphasising that it was imperative to free the nation from the prevailing tax complexities, PM Modi recalled that upon receiving the mandate in 2014, the government prioritised GST in the interest of the people and the nation.

The Prime Minister noted that by bringing all states together, such a monumental tax reform in independent India became possible. The Prime Minister stated that it was the result of joint efforts by the Centre and the states that the country was liberated from the maze of multiple taxes, and a uniform system was established across the nation. He affirmed that the dream of One Nation-One Tax was realised.

The Prime Minister stated that reform is a continuous process, and as times change and national needs evolve, next-generation reforms become equally essential. He noted that keeping in view the current requirements and future aspirations of the country, these new GST reforms are being implemented. PM Modi highlighted that under the new structure, only 5 per cent and 18 per cent tax slabs will primarily remain.

This, he remarked, means that most everyday-use items will become more affordable. He listed food items, medicines, soap, toothbrushes, toothpaste, and health and life insurance among the many goods and services that will either be tax-free or attract only a 5 per cent tax. The Prime Minister further noted that of the items previously taxed at 12 per cent, 99 per cent--virtually all--have now been brought under the 5 per cent tax bracket.

Highlighting that in the past eleven years, 25 crore Indians have overcome poverty and emerged as a significant neo-middle-class segment playing a vital role in the country's progress, the PM emphasised that this neo-middle class has its own aspirations and dreams. He noted that this year, the government has gifted tax relief by making income up to Rs 12 lakh tax-free, bringing substantial ease and convenience to middle-class lives. PM Modi remarked that now it is the turn of the poor and the "neo middle class to benefit". He stated that they are receiving a double bonanza--first through income tax relief, and now through reduced GST.

Underlining that the mantra of 'Nagarik Devobhava' is clearly reflected in the Next Generation GST reforms, the PM highlighted that "when the income tax relief and GST reductions are combined, the decisions taken over the past year will result in savings exceeding Rs 2.5 lakh crore for the people of India." He affirmed that this is precisely why he calls it a 'Bachat Utsav'.

Highlighting that reduced GST rates and simplified procedures will significantly benefit India's MSMEs, small-scale industries, and cottage enterprises, the PM remarked that these reforms will boost their sales and reduce their tax burden, resulting in a double advantage. He expressed high expectations from MSMEs and underscored their historic role as the backbone of India's economy during its peak of prosperity. He noted that India's manufacturing and product quality were once globally recognised and superior.

He affirmed that when the Centre and states move forward together, the dream of a self-reliant India will be fulfilled, every state will develop, and India will become a developed nation. Concluding his address, the Prime Minister extended warm wishes for the GST Bachat Utsav and the auspicious occasion of Navratri. (ANI)

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