On September 21, 2025 at 6:09 PM, the Prime Minister's Office, via PIB Delhi, announced the commencement of the Next Generation GST reforms effective September 22nd, the first day of Navratri. These reforms aim to accelerate India's growth, ease business operations, attract investment, and foster equal development among states.
The GST reform, initiated in 2017, replaced numerous taxes like octroi, entry tax, sales tax, excise, VAT, and service tax, unifying the country under a single tax system. The new GST format introduces tax slabs of five percent and eighteen percent. Everyday items such as food, medicine, soap, brushes, toothpaste, health and life insurance will be either tax-free or at a five percent tax rate. 99% of goods formerly taxed at 12% will now fall under the five percent tax.
Income up to Rs.12 lakh is now tax-free, providing more savings. The reforms also reduce GST rates, simplifying rules and procedures for MSMEs, small-scale industries, and cottage industries. The savings festival is estimated to save people of the country more than Rs 2.5 lakh crore, if we add the exemption in income tax and exemption in GST.
The speech highlighted the importance of Swadeshi to boost domestic manufacturing and promote India's economic growth. The Prime Minister urged state governments to boost manufacturing in their states with the campaign of self-reliant India.
(Release ID: 2169274)
Key Entities Referenced
Goods and Services Tax (GST): A comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India, aimed at creating 'One Nation-One Tax'.
MSMEs (Micro, Small and Medium Enterprises): Small, medium and cottage industries that the policy claims to benefit from reduced GST rates and simplified procedures.
Self-Reliant India campaign: A national campaign promoting domestic manufacturing and reducing reliance on foreign goods, aiming to enhance India's self-sufficiency and global competitiveness.
Swadeshi: A mantra to strengthen the country's independence and prosperity by using goods that are Made in India
Prime Minister's Office
English rendering of PM’s address to the Nation
Posted On: 21 SEP 2025 6:09PM by PIB Delhi
My dear countrymen, Namaskar!
Navratri, the festival of worshipping Shakti, is beginning tomorrow. Best wishes to all of you! From the first
day of Navratri, the country is taking another important and major step towards the Self-Reliant India
campaign. Tomorrow, with sunrise on September 22nd, the first day of Navratri, the Next Generation GST
reforms will come into effect. In a way, a GST savings festival is going to begin in the country from
tomorrow. This GST Savings Festival will increase your savings, and you'll be able to purchase the things you
want more easily. The poor, middle class people, neo middle class, youth, farmers, women, shopkeepers,
businessmen, entrepreneurs of our country, everyone will benefit a lot from this savings festival. This means
everyone will have something sweet to eat during this festive season, and every family in the country will be
blessed. I extend my heartiest congratulations and best wishes to crores of families of the country for the Next
Generation GST reforms and this savings festival. These reforms will accelerate India's growth story, make
doing business easier, make investment more attractive, and make every state an equal partner in the race for
development.
Friends,
When India took the step towards GST reform in the year 2017, it marked the beginning of changing a shift in
history and the creation of a new one. For decades, the people of our country, all of you, the businessmen of
the country, were entangled in the maze of various taxes. Octroi, entry tax, sales tax, excise, VAT, service tax,
there were dozens of such taxes in our country. If goods had to be sent from one city to another, one had to
cross so many checkpoints, fill so many forms, there were so many obstacles, and everywhere, there were
different tax rules. I remember, when the country entrusted me with the responsibility of the post of Prime
Minister in 2014, then in that initial phase, an interesting example was published in a foreign newspaper, in
which the difficulties of a company were mentioned. That company had said that, if it had to send its goods
from Bangalore to Hyderabad, which was 570 kilometers away, then it was so difficult that they thought, and
they said that they would prefer the company to first send its goods from Bangalore to Europe, and then send
the same goods from Europe to Hyderabad.
Friends,
This was the situation back then, due to the complexities of taxes and tolls. And I am just reminding you of an
old example, when lakhs of such companies, lakhs of countrymen, used to face problems every day due to the
maze of different types of taxes. The cost that arose during the transportation of goods from one city to
another was also borne by the poor and was recovered from customers like you.
Friends,
It was very important to get the country out of this situation. Therefore, when you gave us the opportunity in
2014, we made GST our priority in the public interest and in the national interest. We discussed with every
stakeholder, we resolved every doubt of every state, found a solution to every question; by taking all the states
along, such a big tax reform of independent India became possible. It was the result of the efforts of the
Centre and the states that the country became free from the web of dozens of taxes, and a uniform system was
created for the entire country. The dream of One Nation-One Tax came true.
Friends,
Reform is a continuous process. As times change and the country's needs evolve, next-generation reforms
become equally necessary. Therefore, keeping in mind the current needs and future dreams of the country,these new GST reforms are being implemented.
In the new format, there will now be only five percent and eighteen percent tax slabs. This means that most
everyday items will become more affordable. Food items, medicines, soap, brushes, toothpaste, health and life
insurance—many such goods and services—will either be tax-free or will only attract a five percent tax. Of
the goods which were earlier taxed at 12 percent, 99 percent, i.e., nearly 100 percent, have now come under
the purview of 5 percent tax.
Friends,
In the last 11 years, 25 crore people in the country have defeated poverty, conquered it, and by emerging from
poverty, a huge group of 25 crore people is playing a significant role in the country today as the neo-middle
class. This neo middle class has its own aspirations, its own dreams. This year, the government gave them a
gift by making income up to Rs.12 lakh tax-free.
And it's natural that when there is income tax relief for the income of Rs 12 lakh, it brings about a
huge change in the lives of the middle class. It becomes so easy and convenient. And now it is the
turn of the poor, the turn of the neo middle class. Now, the poor, the neo-middle class, and the
middle class are getting a double bonanza. Due to reduction in GST, it will now be easier for the
citizens of the country to fulfill their dreams. Be it building a house, buying a TV, a refrigerator, or
buying a scooter, bike, or a car, you'll have to spend less on all of these. Travelling will also become
cheaper for you, as GST has been reduced on rooms in most hotels.
By the way, friends,
I am pleased that shopkeeper brother-sisters are also very enthusiastic about the GST reform. They are very
busy in passing on the GST reduction to the customers. Signboards displaying the before and now prices are
being put up in many places.
Friends,
The mantra ‘ :', with which we are moving forward, is clearly reflected in the Next Generation GST Reform.
If we add the exemption in income tax and exemption in GST, then the decisions taken in one year will save
more than Rs 2.5 lakh crore for the people of the country. And that is why I am saying, this is a savings
festival.
Friends,
To achieve the goal of developed India, we will have to follow the path of self-reliance. And a huge
responsibility of making India self-reliant also lies on our MSMEs, that is, our small, medium and cottage
industries. Whatever is needed by the people of the country, whatever we can make in the country itself, we
should make it in the country itself.
Friends,
With the reduction in GST rates and simplification of rules and procedures, our MSMEs, our small-scale
industries and cottage industries will benefit a lot. Their sales will increase and they will have to pay less tax,
which means they will also get double benefit. Therefore, today I have great expectations from all of you, be
it MSMEs, small industries, micro industries or cottage industries. You also know that when India was at the
peak of prosperity, the main basis of India's economy was our MSMEs, our small and cottage industries.
India's manufacturing, the quality of goods produced in India, used to be superior. We have to get that pride
back. Whatever our small industries produce should be the best in the world by every standard, the best of the
best. Whatever we manufacture should surpass all the parameters of being the best in the world with pride and
prestige. We must work towards improving the quality of our products, enhance India's recognition in the
world, and increase India's pride.
Friends,
Just as the country's independence was strengthened by the mantra of Swadeshi, similarly the country's
prosperity will also be strengthened by the mantra of Swadeshi. Today, knowingly or unknowingly, many
foreign things have become a part of our daily lives, and we are not even aware of it. We do not even knowwhether the comb in our pocket is foreign or Indian. We will have to get rid of these also. We should buy
goods that are Made in India, in which the hard work of our youth, the sweat of our sons and daughters are
involved. We have to make every home a symbol of Swadeshi. Every shop has to be decorated with
Swadeshi. Say with pride that this is Swadeshi, say with pride, I buy Swadeshi, I also sell Swadeshi goods,
this should become the attitude of every Indian. When this happens, India will develop rapidly. Today, I also
urge all state governments to accelerate manufacturing in their states with this campaign of self-reliant India,
this campaign of Swadeshi, and to join with full energy and enthusiasm. Enhance the environment for
investment. When the Centre and states move forward together, the dream of a self-reliant India will be
fulfilled. Every state in India will develop, and India will develop. With this sentiment, I conclude my speech
by once again extending my best wishes for this savings festival. Once again, I wish you all a very happy
Navratri and the GST savings festival. Thank you very much!
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MJPS/VJ/SS
(Release ID: 2169274)