Prime Minister Narendra Modi said on Monday that the next generation of GST reforms will boost savings and directly benefit every section of society. He also emphasized that following the path of self-reliance is essential to achieve the collective goal of a developed India by 2047.

In an open letter posted to ‘X’, he said that with the implementation of the next generation of GST (Goods and Services Tax) reforms starting September 22, the ‘GST Savings Festival’ has begun across the country.

The Prime Minister said, “This festive season, we are receiving another gift. These reforms will boost savings and directly benefit every section of society– farmers, women, youth, the poor, the middle class, businesses, small industries, cottage industries. They will encourage more growth and investment and accelerate the progress of every state and region.”

He said that an important feature of the next-generation GST reforms is that they primarily have two tax slabs: five percent and eighteen percent.

Modi said in the letter, “Essential daily necessities like food items, medicines, soap, toothpaste, insurance, and many other items will now be either tax-free or in the lowest five percent tax slab. Items that were previously taxed at 12 percent have been almost entirely brought into the five percent tax bracket. It is very heartening to see various shopkeepers and traders displaying ‘before and after’ boards, showing the taxes before and after the reforms.”

He said that in the last few years, 25 crore people have moved out of poverty and an aspiring new middle class has emerged in the country.

The Prime Minister said, “We have also strengthened our middle class by significantly reducing income tax. Now, no tax is levied on income up to twelve lakh rupees. If we combine the income tax cuts and the next-generation GST reforms, people will save approximately 2.5 lakh crore rupees.”

In the letter, he told people, “Your household expenses will decrease, and it will become easier to fulfill aspirations like building a house, buying a vehicle, purchasing appliances, eating out, or going on holiday with family.”

He described the country’s GST journey, which began in 2017, as a significant turning point in freeing citizens and businesses from the web of multiple taxes, stating that GST has economically unified the country.

He said, “One Nation, One Tax brought uniformity and relief. The GST Council, with the active participation of both the Centre and the states, took many pro-people decisions. Now, these new reforms are taking us further, simplifying the system, lowering rates, and putting more savings in people’s hands.”

Modi said, “Our small industries, shopkeepers, traders, entrepreneurs, and MSMEs (Micro, Small, and Medium Enterprises) will also find it easier to do business. Lower taxes, lower prices, and simpler rules mean more sales, less compliance burden, and increased opportunities, especially in the MSME sector.”

Emphasizing the collective goal of a developed India by 2047, he said that achieving it requires walking the path of self-reliance.

He said these reforms strengthen our local manufacturing base and pave the way for a self-reliant India.

The Prime Minister said, “This festive season, let us resolve to support products made in India. This means buying indigenous products, in the making of which an Indian worker and artisan has put in their hard work, regardless of which brand or company manufactures them.”

He said, “Whenever you buy goods made by our country’s artisans, workers, and industry, you help sustain the livelihoods of many families and create employment for the youth of the country.”

He appealed to shopkeepers and traders to sell products made in India.

He said, “Let us say with pride – what we buy is indigenous. Let us say with pride – what we sell is indigenous.”

Modi said, “I also urge state governments to encourage industry and manufacturing and improve the investment climate.”

The Prime Minister said, “My wish is that your household savings increase, your dreams are fulfilled, and you enhance the festive sparkle with the things you love. Wishing you a happy Navratri and a happy ‘GST Savings Festival’.”

While posting the letter on ‘X’, Modi said, “Let’s fill this festive season with new enthusiasm and new energy with the ‘GST Savings Festival’! The new GST rates mean maximum savings for