Prime Minister Narendra Modi on Sunday hailed the launch of next-generation Goods and Services Tax (GST) reforms, calling it a landmark step towards building an Aatmanirbhar Bharat. The reforms, which come into effect from Monday, September 22, coincide with the first day of Navratri.
Addressing the nation at 5 pm, PM Modi declared:
“From sunrise on September 22, a new chapter in India’s tax regime will begin.”
He described the reforms as the start of a “GST Savings Festival” that would directly benefit the poor, middle class, women, small businesses, and the youth.
GST as a Festival of Savings
PM Modi said the new GST structure would reduce the cost of essentials, increase consumer savings, and strengthen purchasing power.
“With these reforms, savings of every Indian will increase, and people will be able to buy their preferred items more easily. This festive season, everyone’s happiness will multiply,” he said, adding that the simplified system would accelerate India’s economic growth.
Looking Back: From a Web of Taxes to ‘One Nation, One Tax’
Reflecting on India’s pre-GST tax regime, the Prime Minister highlighted the inefficiencies before 2017, when the country was caught in a maze of levies like excise, VAT, and octroi.
“For decades, our citizens and traders were caught in the maze of dozens of taxes. Moving goods from one city to another meant crossing multiple checkpoints, filing endless forms, and paying arbitrary tolls. The burden ultimately fell on the poor consumer,” he said.
Citing a striking example, Modi recalled a 2014 foreign newspaper report which said it was easier for a company to ship goods from Bengaluru to Europe and back to Hyderabad than to transport them directly between the two Indian cities.
The Journey of Reform
Modi credited the 2017 GST rollout to extensive consultations with states and stakeholders, calling it a historic achievement.
“It was the result of joint efforts of the Centre and states that the dream of ‘One Nation, One Tax’ became reality,” he said.
A Step Towards the Future
Framing reform as a continuous process, the Prime Minister stressed that the new GST changes were designed to keep pace with India’s evolving economy.
“Reform is a continuous process. As times change, so must our systems. Tomorrow marks a new beginning,” Modi said, underscoring that the latest reforms aim to simplify processes, reduce costs, and empower every section of society.
