Prime Minister Narendra Modi, in a letter to the people on Monday, said the next generation GST reforms will boost savings and directly benefit every section of society.
In an open letter to Indians, which he posted on the social media, PM Modi said from September 22, the next generation GST reforms have begun to make their presence felt, marking the start of a 'GST Bachat Utsav' or 'GST Savings Festival' across the country.
"This year, the festive season brings an added reason to rejoice. These reforms will boost savings and directly benefit every section of society, be it farmers, women, youth, poor, middle class, traders or MSMEs. They will encourage greater growth and investments and accelerate the progress of every state and region," the prime minister said.
A major feature of the next generation GST reforms is that there will mainly be two slabs of 5 per cent and 18 per cent, he said.
"Daily essentials such as food, medicines, soap, toothpaste, insurance and many more items will now either be tax-free or fall in the lowest 5 per cent tax slab. Goods that were earlier taxed at 12 per cent have almost entirely shifted to 5 per cent. It is greatly heartening to see various shopkeepers and traders putting up then and now boards which indicate taxes pre-reforms and post-reforms," Modi said.
Noting that the nation's GST journey, which began in 2017, was a turning point in freeing citizens and businesses from the web of multiple taxes, Modi said the GST united the nation economically.
"'One Nation, One Tax' brought uniformity and relief. The GST Council, with the active participation of both Centre and states, took many pro-people decisions. Now, these new reforms take us further, simplifying the system, reducing rates and putting more savings in the hands of the people," he said.
"Our small industries, shopkeepers, traders, entrepreneurs and MSMEs will also see greater Ease of Doing Business and Ease of Compliance. Lower taxes, lower prices and simpler rules will mean better sales, less compliance burden and growth of opportunities, especially in the MSME sector," he said.
Asserting that the collective goal of the people is Viksit Bharat by 2047, Modi said that in order to achieve it, walking on the path of self-reliance is imperative.
These reforms strengthen our local manufacturing base, paving the way towards Aatmanirbhar Bharat, the PM said.
"On a related note, this festive season, let us also resolve to support products that are Made in India. This means buying Swadeshi products that have the sweat and toil of an Indian involved in their making, irrespective of the brand or the company that makes them," he said.
"Every time you buy a product made by our own artisans, workers and industries, you are helping many families earn their living and creating job opportunities for our youth," Modi said.
He appealed to shopkeepers and traders to sell products that are Made in India.
"Let us proudly say - what we buy is Swadeshi. Let us proudly say - what we sell is Swadeshi," the prime minister said.
"I also urge state governments to encourage industry, manufacturing and improvement of investment climate," he said.