Saturday, March 29, 2025
New Delhi, September 21, 2025 — Prime Minister Narendra Modi extended Navratri greetings to the nation on Sunday and made a major announcement on upcoming tax reforms. He declared that from tomorrow, September 22, significant changes in the Goods and Services Tax (GST) system will come into effect across India.
Prime Minister Narendra Modi addressed the nation live this evening, announcing that sweeping GST reforms will come into effect from September 22, coinciding with the start of Navratri and the launch of a week-long “GST Savings Festival.” He described these changes as the biggest tax reform since independence, promising higher savings, easier purchases, and widespread benefits for all sections—including farmers, small businesses, youth, and the middle class.
Modi extended festive greetings and declared that next-generation GST 2.0 reforms would begin tomorrow, simplifying the indirect tax regime with just two principal slabs: 5% for essentials and 18% for most other goods and services, while luxury and sin goods would continue at 40% GST.
Essential items, groceries, healthcare products, and educational goods will see their GST reduced to 5% or even fully exempted, making them far more affordable for consumers. Small cars, electronics, and most services will shift to the 18% slab. Super luxury goods such as tobacco, high-end vehicles, and yachts remain taxed at the highest rate.
Modi emphasized that these reforms are designed not just for economic growth, but to boost household savings and ensure every state has equal opportunity in India’s development. “This GST Savings Festival will benefit the poor, youth, women, traders, and businesses, sweetening the festive season for all,” he said.
The BJP is launching a week-long national campaign from September 22–29 to educate the public and traders about the new GST reforms and their impact, through marketplace outreach and demonstrations.
Consumers and businesses can expect immediate price reductions on a variety of goods and more streamlined compliance procedures.
Four GST slabs (5%, 12%, 18%, 28%) rationalized into two main slabs (5%, 18%) plus a 40% rate for sin/luxury goods.
Exemptions on healthcare, life insurance, and key educational goods/services.
Simplified digital filing, quicker refunds, and improved ease of doing business for MSMEs.
These landmark changes were unanimously cleared by the GST Council and are being implemented to coincide with the festive season, aiming to deliver “Diwali-like” benefits to consumers and bolster India’s growth story.
