‘GST reforms to boost savings, encourage growth, accelerate progress,’ says PM Modi in open letter to citizens

Prime Minister Narendra Modi penned an open letter to citizens on Monday—the day of the rollout of the Goods and Services Tax (GST) reforms—and said lower GST rates mean more savings for every household and greater ease for businesses. The PM added that the 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,” PM Modi stressed.

“An important feature of the next-generation GST reforms is that there will mainly be two slabs of 5% and 18%. Daily essentials such as food, medicines, soap, toothpaste, insurance and many more items will now either be tax-free or fall in the lowest 5% tax slab. Goods that were earlier taxed at 12% have almost entirely shifted to 5%,” PM Modi said in the open letter, which he shared on X.

The major GST overhaul, being dubbed GST 2.0, came into effect on Monday, September 22. In the new regime, the GST rates have been lowered on a wide range of products and services.

The PM added that it is heartening to see shopkeepers and traders putting up ‘then and now’ boards which indicate taxes pre-reforms and post-reforms.

“In the last few years, 25 crore people have risen above poverty and formed an aspirational neo-middle class. Further, we have also strengthened the hands of our middle class with the massive income tax cuts, which ensure zero tax up to the annual income of Rs 12 lakh,” he said.

Reiterating the swadeshi pitch, the prime minister urged shopkeepers and traders to sell made-in-India products.

“…This festive season, let us also resolve to support products that are Made in India. This means buying Swadeshi products that have the sweat and toil of an Indian involved in their making, irrespective of the brand or the company that makes them,” Modi said.

“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,” he said.

He said that by purchasing products made by Indian artisans, workers, and industries, the public would help many families earn their livelihood and create job opportunities for the youth.

“From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home," Modi said on X, posting pictures of the front page of leading Hindi and English dailies.

The PM also urged state governments to encourage industry, manufacturing and improve the investment climate in their states.

In another post on X, the prime minister highlighted the sweeping and upbeat coverage given in newspapers to the reduced GST rates to underscore the nationwide buzz it has created.

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