From September 22, only 5% and 18% GST slabs will remain, bringing relief to households, traders, and industries.
Prime Minister Shri Narendra Modi addressed the nation on September 21, 2025 via video conferencing, extending greetings on the occasion of Navratri. He announced that beginning 22nd September, India will implement Next-Generation GST reforms, which he described as the beginning of a nationwide “GST Bachat Utsav” (Savings Festival).
The Prime Minister said the reforms will benefit all sections of society, including the poor, middle class, farmers, women, shopkeepers, and entrepreneurs. He emphasized that reduced GST will make essential goods and services such as food items, medicines, soap, toothpaste, and insurance more affordable. Most goods previously taxed at 12% will now fall under the 5% bracket, while only 5% and 18% slabs will remain going forward.
Highlighting the reforms, The PM stated that this will accelerate India’s growth story, simplify business, boost investment, and strengthen the role of states in development. He recalled India’s earlier struggles with multiple taxes before GST was introduced in 2017, noting that the system had freed citizens and traders from a complex web of levies like Octroi, VAT, and Excise.
The PM also linked the reforms to India’s larger goal of Aatmanirbhar Bharat (self-reliance), urging citizens to buy Made in India products. He underlined the importance of MSMEs, small industries, and cottage enterprises, calling them the backbone of the nation’s economy.
Stressing the importance of quality manufacturing, he said Indian products should meet the highest global standards and carry the nation’s pride. He appealed to households and shops to adopt Swadeshi practices by choosing and promoting indigenous goods.
Concluding his address, The PM said the GST reforms, combined with income tax relief, will result in savings exceeding ₹2.5 lakh crore for Indian citizens. He extended his best wishes for both Navratri and the GST Savings Festival.
Source: PMO
