Prime Minister Narendra Modi stated on Monday that reduced GST rates will lead to increased savings for families and easier operations for companies. He mentioned that the changes will support all groups in society, including farmers, women, young people, the less fortunate, the middle class, merchants, and small businesses. "An important aspect of the upcoming GST changes is that there will primarily be two tax rates of 5% and 18%. Everyday necessities like food, medical supplies, soap, toothpaste, insurance, and more will now either be tax-exempt or fall under the lower 5% rate. Products that were previously taxed at 12% have mostly moved to the 5% category," PM Modi expressed in a public letter to citizens regarding GST changes on September 22, which he shared on X. India's significant tax reform, known as GST 2.0, has started today, September 22. This new system introduces a simpler two-rate format, lower taxes on a variety of goods, and steps to make compliance easier.
This festive season, let's celebrate the 'GST Bachat Utsav'! Lower GST rates mean more savings for every household and greater ease for businesses. pic.twitter.com/QOUGWXrC3d
— Narendra Modi (@narendramodi) September 22, 2025
"The changes will enhance savings and directly help every segment of society, including farmers, women, young adults, the impoverished, the middle class, merchants, and small enterprises," the prime minister continued. He noted that it is uplifting to observe many retailers displaying 'then and now' signs that show tax rates before and after the reforms. "In recent years, 25 crore individuals have moved out of poverty and formed an aspiring new middle class. Additionally, we have empowered our middle class through significant income tax reductions, which allow for zero tax on annual earnings up to Rs 12 lakh," the PM stated. Reinforcing the call for local products, the prime minister urged shopkeepers and traders to promote goods made in India. "I encourage our shopkeepers and merchants to offer products that are Made in India. Let us proudly declare – what we purchase is Swadeshi. Let us proudly declare – what we sell is Swadeshi," he remarked.
In a separate update on X, the prime minister emphasized the positive and extensive media coverage regarding the lowered GST rates to highlight the excitement it has generated across the country. "From markets to homes, GST Bachat Utsav creates a festive atmosphere, resulting in reduced prices and happier faces in every household," Modi commented on X, sharing images of the front pages of major Hindi and English newspapers.
