New Delhi: Prime Minister Narendra Modi in a live address to the nation on Sunday (September 21) reiterated the GST tax reforms announced by Union finance minister Nirmala Sitharaman earlier this month.

Wishing people Navaratri, Modi said that a very important step on India’s route to ‘Aatmanirbhar Bharat’ will also coincide with the beginning of the festival on Monday. “In a way, this is a GST-bachat utsav (GST savings festival),” the prime minister said.

He said that next generation reforms will kick off at the crack of dawn tomorrow, which will benefit everyone including the poor, middle classes and women. These benefits will come as a sweet gift for people during the festival season, he added.

“These reforms will accelerate India’s growth story, increase ease of business and attract investments in India while boosting consumption,” Modi said. 

Claiming that the dream of ‘one nation, one tax’ had been fulfilled, the prime minister reiterated the two tax slabs under GST – 5% and 18% – will replace the earlier structure, with most of the items that earlier fell in the 12% slab now coming under the lower tax bracket. 

The GST council on September 3 had approved this two-tier rate structure to be implemented from September 22, which is expected to incur a loss of about Rs 48,000 crore.

The prime minister said that GST’s introduction in 2017 had marked a new beginning for India’s tax reforms, which removed all barriers in the free flow of goods.

His linking of the latest round of GST reforms – an attempt to boost domestic consumption and demand – with the Make in India campaign has come at a time when the US has levied 50% tariffs on India, of which 25% are a punitive measure against India’s purchase of Russian oil. The tariffs have squeezed Indian manufacturers, forcing India to mend relations with China to attempt a rerouting of its exports.

“An estimated 25 crore will benefit because of these reforms,” Modi said, adding that travel and luxurious items like TV, Fridge, AC will become cheaper, easing the situation of middle classes who are trying to build homes. These reforms will fulfill the aspirations of our neo-middle classes, he said.

“If we factor in income tax reform along with the GST reforms, Indian citizens will save up to Rs 2.5 lakh crores,” the prime minister said.

Being self reliant is the need of the hour, he said, adding that it will bring pride to the nation.

“Humein har ghar ko swadeshi ka prateek banana hai, har dukaan ko swadeshi se sazana hai. (We must make every home a symbol of 'Made in India', and adorn every shop with 'Made in India' [goods]),” he said.

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