GST Bachat Utsav begins: PM Modi calls it a “Savings Festival” for all Indians

Prime Minister Narendra Modi, in his speech delivered last evening, addressed the nation, unveiling the next generation of Goods and Services Tax (GST) reforms that will take effect from September 22, the first day of Navratri. He described the reforms as the start of a “GST Bachat Utsav” — a festival of savings meant to make essential goods cheaper, increase middle-class savings, and drive India’s economic growth.

“From tomorrow, ‘GST Bachat Utsav’ will commence,” Prime Minister Modi said last evening. “Your savings will increase and you will be able to buy your favourite things more easily. This savings festival will benefit all sections of society — from the poor and middle class to the youth, farmers, women, traders, and entrepreneurs.”

He explained the reforms include a simplified tax structure with only two major GST slabs of 5% and 18%, replacing multiple earlier rates. “Out of the goods which were earlier taxed at 12%, 99% of the items have now come under the 5% slab,” he said, highlighting that this will make everyday items like food, medicines, soaps, health insurance, and daily essentials more affordable.

Addressing concerns about the economic impact, the Prime Minister stated, "With income tax relief and these new GST reforms combined, the people of the country will save more than ₹2.5 lakh crore." He added this presents a "double bonanza" for the poor and neo middle class, making life easier for millions.

Modi urged all state governments to join the campaign for ‘Swadeshi’ and ‘Atmanirbhar Bharat’ by promoting local manufacturing and boosting investment. “When the nation and states work together, the dream of ‘Atmanirbhar Bharat’ will be fulfilled,” he said.

Reflecting on the journey, PM Modi recalled the older tax system’s complexities. “Before 2017, our tax landscape was a maze of octroi, VAT, excise, service tax, and multiple levies that created hardships for citizens and businesses. Moving goods across states involved numerous checkpoints and extra costs that fell on the poor consumer,” he said. Modi credited the introduction of GST with realizing the dream of “one nation, one tax.”

He described reform as a continuous process: “As times change and the country's needs evolve, next-generation reforms like today’s GST changes are necessary, keeping in mind current needs and future dreams. These reforms will accelerate India’s growth story, increase ease of doing business, and attract more investors.”

The Prime Minister also emphasized the impact on specific groups: “The GST reforms will help MSMEs, support farmers, empower women and youth, and strengthen the middle class—the backbone of our economy.”

Political reactions followed PM Modi’s speech. Congress leader Mallikarjun Kharge criticized the GST reforms as a mere “band-aid” over years of high taxation, accusing Modi’s government of imposing complex tax slabs that burdened the public. Other opposition politicians questioned Modi’s claim of sole credit for the reforms and highlighted other pressing issues they felt were overlooked.