India set to launch 'next gen GST reforms' on Monday: PM Modi

Prime Minister Narendra Modi, on Sunday, while addressing the nation, announced that the “next generation GST reforms” will be implemented from Monday, calling it a “GST Bachat Utsav” for the people. He said the reforms will bring happiness to every family, accelerate India’s growth story, increase savings, and enable citizens to buy their favourite things, benefiting all sections of society.

“Ninety-nine per cent of the goods that were taxed will now attract only 5 per cent GST. This will make your groceries two insurance policies cheaper,” the PM said.

Reflecting on the 2017 GST rollout, Modi spoke about how India’s previous system entangled people and traders in a web of multiple levies, including octroi, entry tax, sales tax, excise, VAT, service tax, and dozens of other charges, while countless checkpoints made intercity goods movement cumbersome. He said GST realised the dream of “One Nation, One Tax,” freeing the country from this complex system and benefiting both businesses and consumers.

The Prime Minister highlighted that 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 government's income tax exemption on earnings up to ₹12 lakh is a double bonanza for the poor, neo-middle class and middle class. In the last eleven years, 25 crore people have emerged from poverty, forming a neo-middle class that plays a significant role in the country today. This year, the government has presented a gift by making income up to ₹12 lakh tax-free. With this relief, the lives of the middle class are transformed, bringing simplicity and convenience, and now, combined with GST reduction, citizens can more easily fulfil their dreams,” he said.

He further said that the GST reform was achieved through extensive consultations with all stakeholders and states, addressing doubts and finding solutions collectively. “By taking all states on board, India’s largest tax reform became possible. The combined efforts of the central and state governments established a uniform system across the country, making the dream of ‘One Nation, One Tax’ a reality,” Modi added.