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
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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.
(with agencies’ inputs)
