PM Modi: 'GST savings festival a double bonanza for the middle class'
Prime Minister Narendra Modi addresses the nation on Sunday, his office announced, a day ahead of Navratri and the implementation of the new Goods and Services Tax (GST) reforms.
Prime Minister Narendra Modi on Sunday addressed the nation and announced the launch of a "GST Utsav" from the first day of Navratri on Monday. Additionally, he said that from September 22, people will be able to purchase several items at lower prices as the new Goods and Services Tax (GST) rates come into effect.
PM Modi called the GST Utsav a festival of savings for the people of India. He also emphasised that the poor and the new middle class are getting double benefits after the GST rate cuts.
Key Highlights Of PM Modi's Address
1- GST Reforms
"Next Gen GST reforms being implemented from tomorrow, it is like ‘GST saving festival’," PM Modi said.
"From tomorrow, you will be able to buy your favourite items with ease. This is like a GST saving festival for every Indian," the Prime Minister added.
2- Impact Of New GST Reforms
The PM also said that the new phase of GST reforms will directly benefit the common man, farmers, MSMEs, middle-class families, women and youth.
3- 2014 Flashback
"I remember, in 2014, when the country entrusted me with the responsibility of Prime Minister, an interesting incident was published in a foreign newspaper during that initial period. It described the difficulties of a company. The company said that if it had to send its goods from Bengaluru to Hyderabad, 570 km away, it was so difficult that they considered it and said that they would prefer the company to first send its goods from Bengaluru to Europe and then send the same goods from Europe to Hyderabad," he said.
"Friends, this was the situation at that time due to the complexities of taxes and tolls...At that time, millions of such companies, along with millions of countrymen, faced daily problems due to the maze of various taxes. The increased expenses incurred in transporting goods from one city to another were borne by the poor, and customers like you were charged. It was essential to free the country from this situation," the PM added.
4- 'Reform Is...': PM During Address
"Reform is a continuous process. As times change and the country's needs change, next-generation reforms are equally necessary. These new GST reforms are being implemented, keeping in mind the country's current needs and future dreams," the Prime Minister added.
Also Read: PM Modi Addresses Nation; Pushes For Swadeshi Movement, Says, 'Buy More Indian Goods'
5- What Would Get Cheaper?
"In the new form, there will now be only 5% and 18% tax slabs. This means that most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only a 5% tax will have to be paid. Out of the goods which were earlier taxed at 12%, 99% of the items have now come under the slab of 5% tax," he said.
6- Push For Swadeshi Movement
"To reach the goal of a developed India, we must walk on the path of self-reliance, and a very big responsibility to make India self-reliant also lies on our MSMEs. What is needed by the people of the country, what we can make in our own country, we should make right here in the country," the PM said.
The reduction in GST rates and the simplification of rules and procedures will greatly benefit our MSMEs, small industries, and cottage industries. Their sales will increase, and they will have to pay less tax, meaning they will also receive a double benefit… Just as the country's independence gained strength from the mantra of Swadeshi... similarly, the country's prosperity will also gain strength from the mantra of Swadeshi alone," he added.
"I also urge all state governments to join this campaign of 'Atmanirbhar Bharat' and Swadeshi and to create an environment for investment by increasing production in their states...When the nation and states work together, the dream of 'Atmanirbhar Bharat' will be fulfilled," PM Modi added.
Govt's GST Reforms
The government had earlier announced a GST rate cut on September 4, covering several products, including automobiles and daily consumer items. This marks the biggest indirect tax reform since the GST was rolled out in July 2017.
As per IANS, the new system, which is often referred to as GST 2.0, introduces a two-slab structure of 5 per cent and 18 per cent, with an additional 40 per cent rate only for super luxury, sin, and demerit goods.
PM Modi Live: 'New GST slabs will make most everyday items cheaper,' says PM Modi
"In the new form, there will now be only 5% and 18% tax slabs. This means that most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only a 5% tax will have to be paid. Out of the goods which were earlier taxed at 12%, 99% of the items have now come under the slab of 5% tax," says PM Modi.
PM Modi Live: 'With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams', says PM Modi
"In the last eleven years, 25 crore people in the country have defeated poverty. Having emerged from poverty, a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today. This neo-middle class has its own aspirations and dreams. This year, the government presented a gift by making income up to Rs 12 lakh tax-free and naturally, when income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation, bringing about so much simplicity and convenience...Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams," says PM Modi
"Reform is a continuous process. As times change and the country's needs change, next-generation reforms are equally necessary. These new GST reforms are being implemented, keeping in mind the country's current needs and future dreams", PM Modi added.
"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 addressed every state's doubts and found solutions to every question. By taking all states on board, India's largest tax reform became possible. It was the result of the efforts of the central and state governments that the country was freed from the web of dozens of taxes, and a uniform system was established for the entire country. The dream of 'One Nation, One Tax' was realised," the PM said.
PM Modi Live: GST realised one nation-one tax' dream, PM Modi says
"I remember, in 2014, when the country entrusted me with the responsibility of Prime Minister, an interesting incident was published in a foreign newspaper during that initial period. It described the difficulties of a company. The company said that if it had to send its goods from Bengaluru to Hyderabad, 570 km away, it was so difficult that they considered it and said that they would prefer the company to first send its goods from Bengaluru to Europe and then send the same goods from Europe to Hyderabad," says PM Modi.
"Friends, this was the situation at that time due to the complexities of taxes and tolls...At that time, millions of such companies, along with millions of countrymen, faced daily problems due to the maze of various taxes. The increased expenses incurred in transporting goods from one city to another were borne by the poor, and customers like you were charged. It was essential to free the country from this situation," he added.
PM Modi Live: PM Modi highlights the intricacies in indirect tax system before the GST was rolled out
"When India embarked on GST reform in 2017, it marked the beginning of changing an old history and creating a new one. For decades, our country's people and our country's traders were entangled in a web of various taxes. Octroi, entry tax, sales tax, excise, VAT, service tax—dozens of such taxes existed in our country. To send goods from one city to another, we had to cross countless checkpoints," says PM Modi.
PM Modi Live: These reforms will accelerate India's growth story, simplify business, make investment more attractive, says PM Modi on GST reform
"Tyohaaro ke iss mausam mein sabka muh meetha hoga. Desh ke har pariwar ki khushiya badhegi... I extend my heartfelt congratulations and best wishes to millions of families across the country for the Next Generation GST reforms and 'Bachat Utsav'. These reforms will accelerate India's growth story, simplify business, make investment more attractive, and make every state an equal partner in the race for development," says PM Modi
PM Modi Live: From the first day of Navratri, the country is taking an important step towards Aatmanirbhar Bharat, says PM Modi
"From tomorrow, the festival of Navratri is starting. I extend my best wishes to you. From the first day of Navratri, the country is taking an important step towards Aatmanirbhar Bharat. Tomorrow, on the first day of Navratri, Next-Generation GST reforms will come into effect with sunrise," says PM Modi.
PM Modi Live: ‘GST Bachat Utsav’ will begin tomorrow, which will increase your savings, says PM Modi
“From the first day of Navratri, the country is taking another important step towards an Atmanirbhar Bharat. Starting tomorrow, the next-generation GST reforms will be implemented with sunrise. The ‘GST Bachat Utsav’ will also begin, which will increase your savings,” says PM Modi
PM Modi Live: PM begins his address to the nation
Prime Minister Narendra Modi begins his address to the nation.