Says 5 Percent and 18 Percent slabs remain, reforms simplify taxation, benefit poor, middle class, and state economies
New Delhi, Sept 21: Prime Minister Narendra Modi on Sunday announced that from tomorrow, a new Goods and Services Tax (GST) framework will come into force with only two main slabs of 5 per cent and 18 per cent. He said the change is aimed at making everyday goods and services more affordable.
Addressing the nation, Modi said the reforms would begin with the festival of Navratri. “From the first day of Navratri, next-generation GST reforms will come into effect with sunrise,” he said.
According to him, essential goods such as food items, medicines, soap, toothpaste, brushes, health insurance and life insurance will now either be tax-free or attract only 5 per cent tax. “Among the items that were taxed at 12 per cent earlier, nearly 99 per cent have now been brought under the 5 per cent category,” Modi said.
The Prime Minister also announced a nationwide “GST Bachat Utsav,” which he said will allow citizens to save more during the festive season. “Your savings will increase, and you will be able to buy the things of your choice easily,” he said.
Modi recalled that before GST was implemented in 2017, businesses had to navigate multiple taxes and checkpoints while moving goods between states. “For decades, traders and citizens were entangled in octroi, entry tax, excise, VAT and other levies,” he said.
He added that GST, introduced after discussions with states and stakeholders, had fulfilled the goal of “One Nation, One Tax.” The latest changes, he said, mark the next phase of the reform process.
“The poor, the middle class and the neo-middle class will all benefit from these reforms,” he said.(KNS).
