On September 21, 2025, Prime Minister Narendra Modi addressed the nation, announcing the commencement of the GST Bachat Utsav on the first day of Navratri, September 22. This initiative marks a significant overhaul in India's Goods and Services Tax (GST) system, aimed at providing substantial savings to the citizens and promoting economic self-reliance.
What Is the GST Bachat Utsav?
The GST Bachat Utsav (Savings Festival) is a nationwide campaign introduced by the government to coincide with the festive season. The initiative is designed to ease the financial burden on the common man by reducing the Goods and Services Tax rates on a wide range of essential goods and services. This move is expected to result in significant savings for consumers, particularly benefiting the poor, middle class, and the emerging neo-middle class.
Key Highlights of the GST Reforms
Simplified Tax Slabs: The new GST structure reduces the number of tax slabs, retaining only 5% and 18%. This simplification aims to make the tax system more transparent and easier to navigate.
Lower Tax Rates on Essentials: Nearly 99% of items previously taxed at 12% have now been moved to the 5% category, including daily-use items such as food, medicines, soap, toothpaste, and insurance. These changes are expected to make essential goods more affordable for the general public.
Increased Income Tax Exemption: The income tax exemption limit has been raised to ₹12 lakh, providing additional financial relief to taxpayers. Combined with the GST reforms, these measures are projected to result in savings of approximately ₹2.5 lakh crore for citizens.
A Festive Beginning
Prime Minister Modi emphasized that the launch of the GST reforms on the first day of Navratri symbolizes a new beginning for the nation. He referred to the occasion as a "double bonanza," offering both spiritual and economic benefits to the people. The reforms are seen as a step towards achieving the vision of an Atmanirbhar Bharat (Self-Reliant India), with a focus on promoting indigenous products and reducing dependence on foreign goods.
Encouraging 'Swadeshi' Consumption
In his address, the Prime Minister urged citizens to take pride in purchasing 'Swadeshi' (indigenous) products. He highlighted that supporting domestic products not only boosts the local economy but also contributes to the nation's self-reliance. The GST Bachat Utsav is seen as an opportunity for consumers to make cost-effective choices while supporting Indian businesses.
Conclusion
The launch of the GST Bachat Utsav on the first day of Navratri marks a significant milestone in India's economic reforms. By simplifying the GST structure and reducing tax rates on essential goods, the government aims to provide substantial savings to the citizens, particularly benefiting the poor and middle class. Coupled with the increased income tax exemption, these measures are expected to stimulate economic growth and promote self-reliance.
FAQs
Q: What is the GST Bachat Utsav?
A: The GST Bachat Utsav is a nationwide campaign introduced by the government to coincide with the festive season. It aims to reduce the financial burden on citizens by lowering GST rates on essential goods and services.
Q: How many tax slabs are there under the new GST structure?
A: The new GST structure simplifies the tax system by retaining only two tax slabs: 5% and 18%.
Q: Which items are now taxed at 5% under the new GST reforms?
A: Nearly 99% of items previously taxed at 12% have now been moved to the 5% category, including daily-use items such as food, medicines, soap, toothpaste, and insurance.
Q: What is the new income tax exemption limit?
A: The income tax exemption limit has been raised to ₹12 lakh, providing additional financial relief to taxpayers.
Q: How much savings are expected from these reforms?
A: The combined effect of the GST reforms and income tax exemptions is projected to result in savings of approximately ₹2.5 lakh crore for citizens.
Published on : 22nd September
Published by : SMITA
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