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.&nbsp;&nbsp;

<blockquote class="twitter-tweet">This festive season, let&#39;s celebrate the &#39;GST Bachat Utsav&#39;! Lower GST rates mean more savings for every household and greater ease for businesses. <a href="https://t.co/QOUGWXrC3d">pic.twitter.com/QOUGWXrC3d</a>&mdash; Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1970085771127517271?ref_src=twsrc%5Etfw">September 22, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;&nbsp;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.&nbsp;“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.&nbsp;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.&nbsp;&nbsp;

<blockquote class="twitter-tweet">From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home! <a href="https://t.co/hW9ebIw3Ri">pic.twitter.com/hW9ebIw3Ri</a>&mdash; Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1970076672297754675?ref_src=twsrc%5Etfw">September 22, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;&nbsp;“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.&nbsp;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.&nbsp;WATCH: Guide To New GST Rate Cuts: Do Consumers Always Get The Benefit of Tax Cuts?<a href="https://www.wionews.com/videos/guide-to-new-gst-rate-cuts-do-consumers-always-get-the-benefit-of-tax-cuts-1758548156507/embed">https://www.wionews.com/videos/guide-to-new-gst-rate-cuts-do-consumers-always-get-the-benefit-of-tax-cuts-1758548156507/embed</a>&nbsp;

Under the GST reforms, the previous four-tiered tax rate structure has been revised into what the Narendra Modi-led NDA government at the Centre says is a citizen-friendly ‘simple tax’—a two-rate structure of 18 per cent and five per cent.

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.

Under the GST reforms, the previous four-tiered tax rate structure has been revised into what the Narendra Modi-led NDA government at the Centre says is a citizen-friendly ‘simple tax’—a two-rate structure of 18 per cent and five per cent.

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

In his address to the nation, Indian Prime Minister Narendra Modi on Sunday (Sep 21) hailed the implementation of Goods and Services Tax 2.0 reforms, adding that the government is gifting a ‘double bonanza’ to the neo middle class of the country. He expressed wishes for the festival of Navratri, which will begin tomorrow. The GST reforms, which will include only a 5 per cent of 18 per cent tax slab, are aimed at uplifting the people out of poverty and economically benefit the citizens.PM Modi said that items like daily essentials, medicines, health insurance and other vital products will be tax-free or will only have 5 per cent tax. He added that 99 per cent of the items that earlier carried a 12 per cent tax will now have just a 5 per cent tax.Also read | <a href="https://www.wionews.com/india-news/pm-modi-hails-next-gen-gst-reforms-in-his-address-to-nation-extends-navratri-wishes-1758447609162">'Tomorrow GST2.0 will be rolled out': PM Modi addresses the nation, extends Navratri wishes</a>“In the last 11 years, 25 crore people defeated poverty, becoming the neo middle class of the country that is now playing a vital role in the country. This neo middle class has their own aspirations, dreams,” he said.The prime minister added, “This year government has given a gift to the people by making income of up to 12 lac tax-free. Naturally, when this income is tax-free, it will bring a significant change in the lives of middle-class people.”Also read | <a href="https://www.wionews.com/india-news/-say-it-with-pride-that-you-use-swadeshi-pm-modi-urges-citizens-to-use-made-in-india-products-amid-tariff-war-with-us-1758456154761">'Say it with pride that you use Swadeshi...': PM Modi urges citizens to use Made-In-India products amid tariff war with US</a>“Now it is time for the poverty-stricken, the neo middle class, the middle class is getting a double bonanza. Reduced GST will allow citizens to fulfil their dreams. They will be able to build their home, purchase TV, scooter, bike and car,” PM Modi said.PM Modi also added that vacations will be cheaper for families as hotels will now have reduced GST. He also hailed the motto of ‘nagrik devo bhava’ (citizen is God).

PM Modi said that items like daily essentials, medicines, health insurance and other vital products will be tax-free or will only have 5 per cent tax.

In his address to the nation, Indian Prime Minister Narendra Modi on Sunday (Sep 21) hailed the implementation of Goods and Services Tax 2.0 reforms, adding that the government is gifting a ‘double bonanza’ to the neo middle class of the country. He expressed wishes for the festival of Navratri, which will begin tomorrow. The GST reforms, which will include only a 5 per cent of 18 per cent tax slab, are aimed at uplifting the people out of poverty and economically benefit the citizens. PM Modi said that items like daily essentials, medicines, health insurance and other vital products will be tax-free or will only have 5 per cent tax. He added that 99 per cent of the items that earlier carried a 12 per cent tax will now have just a 5 per cent tax. Also read | 'Tomorrow GST2.0 will be rolled out': PM Modi addresses the nation, extends Navratri wishes “In the last 11 years, 25 crore people defeated poverty, becoming the neo middle class of the country that is now playing a vital role in the country. This neo middle class has their own aspirations, dreams,” he said. The prime minister added, “This year government has given a gift to the people by making income of up to 12 lac tax-free. Naturally, when this income is tax-free, it will bring a significant change in the lives of middle-class people.” Also read | 'Say it with pride that you use Swadeshi...': PM Modi urges citizens to use Made-In-India products amid tariff war with US “Now it is time for the poverty-stricken, the neo middle class, the middle class is getting a double bonanza. Reduced GST will allow citizens to fulfil their dreams. They will be able to build their home, purchase TV, scooter, bike and car,” PM Modi said. PM Modi also added that vacations will be cheaper for families as hotels will now have reduced GST. He also hailed the motto of ‘nagrik devo bhava’ (citizen is God).

PM Modi said that items like daily essentials, medicines, health insurance and other vital products will be tax-free or will only have 5 per cent tax.

Govt gifting ‘double bonanza’ to citizens: PM Modi says GST 2.0 will allow neo middle class to fulfil their dreams

In 2017, India embarked on a transformative journey with the introduction of the Goods and Services Tax (GST), a unified tax system aimed at simplifying the country's complex tax structure. 

&nbsp;In 2017, India embarked on a transformative journey with the introduction of the Goods and Services Tax (GST), a unified tax system aimed at simplifying the country's complex tax structure.&nbsp;

PM Modi speech: Top 7 taxes erased forever by GST

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

PM Modi says govt gifting ‘double bonanza’ to citizens to fulfil their dreams

PM Modi speech: Top 7 taxes erased forever by GST