New Delhi, September 22, 2025 : In a landmark step toward building a stronger and self-reliant India, the Government of India has rolled out the Next-Generation GST Reforms, effective from today. Launched under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi, these reforms mark a decisive shift towards simplification, inclusivity, and economic acceleration for every stratum of Indian society.
In a special national address coinciding with the first day of Navratri, Prime Minister Modi outlined how the new GST regime, built on a streamlined two-slab tax structure, will directly benefit the middle class, youth, MSMEs, and every Indian household. With this major reform, India embarks on a crucial journey that integrates the core visions of Aatmanirbhar Bharat, Make in India, and Viksit Bharat 2047 into actionable reality.
My address to the nation. https://t.co/OmgbHSmhsi
— Narendra Modi (@narendramodi) September 21, 2025
A Simpler, Smarter GST Structure
Under the new system, GST will now be levied at just two main rates: 5% and 18%, replacing the previous multi-slab structure that was often criticized for complexity and lack of clarity. This simplification is set to make most daily-use items, including food, medicines, soaps, toothbrushes, toothpaste, health and life insurance services, either GST-free or taxed at a minimal 5% rate.
Prime Minister Modi announced that 99% of items previously taxed at 12% have now been moved to the 5% category, resulting in significant price reductions for the public. “This is not just a tax reform; it’s a savings revolution,” the Prime Minister declared.
From Tax Complexity to Consumer Empowerment
Before GST was introduced in 2017, citizens and businesses grappled with a complicated web of taxes such as Octroi, Entry Tax, VAT, Service Tax, Sales Tax, and Excise Duty. The reform that began in 2017 was a historic turning point, but today’s overhaul takes it further—removing redundancies and boosting transparency.
“People used to feel suffocated in the tax jungle. Today, the dream of ‘One Nation, One Tax’ has become a reality,” PM Modi said during his 19-minute address. He emphasized that this reform will drive ease of living for citizens and ease of doing business for enterprises across India.
Empowering the Middle Class and Fueling Aspirations
In a major relief to the middle-income segment, the government has increased the income tax exemption limit to ₹12 lakh per annum, thereby enhancing disposable income. Over the next fiscal year, this move combined with GST reductions is expected to generate over ₹2.5 lakh crore in public savings.
“This is a double delight for India’s middle class. Not only will they save more, but they will also have greater purchasing power to fulfill their dreams,” the Prime Minister remarked.
He acknowledged the emergence of a new middle class—25 crore Indians who have risen out of poverty over the last 11 years and now form the core of India’s growth story. These citizens, he said, are aspirational, hard-working, and vital to the success of Viksit Bharat.
MSMEs: The Backbone of Aatmanirbhar Bharat
The new GST system significantly lowers compliance burdens and tax liabilities for Micro, Small, and Medium Enterprises (MSMEs). This is expected to catalyze domestic production, drive innovation, and strengthen India’s supply chain ecosystem.
The Prime Minister urged that whatever Indians need, should be produced in India. Emphasizing Swadeshi sentiment, he called upon citizens to purchase indigenous products with pride and support local industries.
GST Savings Festival Begins
Calling this reform a “GST Savings Festival”, PM Modi encouraged every household to celebrate their new savings and reinvest it into better lifestyles and domestic consumption. “From tomorrow, every sunrise will bring new savings. The GST reform is not just economic—it’s emotional,” he said.
He also reaffirmed the government’s mantra of “Nāgarika Devo Bhavaḥ” — viewing citizens as the highest stakeholders in the nation’s progress.
A Reform Aligned with the Future
The Prime Minister reiterated that reform is a continuous process and must evolve with time and changing national needs. The GST transformation is designed not just to reduce prices but to unlock new opportunities, invite investments, and accelerate national growth.
“All states will now be equally empowered to grow, attract business, and deliver benefits to their people. This reform creates a level playing field for all,” he stated.
Today, 22nd September 2025, is to getting etched in history as an iconic date as Bharat rolls out the Next-Generation GST reforms under the visionary leadership of Hon’ble Prime Minister Shree Narendra Modi Ji.
The upgraded 2-slab structure brings about a welcome change in the… pic.twitter.com/cEwRBVdntp
— Mohan Charan Majhi (@MohanMOdisha) September 22, 2025
Towards Viksit Bharat 2047
These sweeping changes are part of India’s larger roadmap to become a developed nation by 2047, marking 100 years of independence. The emphasis on fiscal simplification, inclusive policy, and economic nationalism is expected to shape a future that is bold, equitable, and self-sustained.
Odisha Joins the Nation in Applauding the Reform
The state of Odisha has extended heartfelt thanks to Prime Minister Modi for this forward-looking, citizen-centric initiative. Echoing the national sentiment, the state has expressed its full commitment to ensuring the success of the new GST framework and contributing meaningfully to the vision of Viksit Bharat.
Conclusion
The launch of the Next-Gen GST is not just an economic reform—it’s a national movement. By simplifying taxes, empowering citizens, boosting local industry, and ensuring widespread public savings, this policy shift reaffirms India’s collective march toward prosperity and pride.
The path to a self-reliant, developed Bharat is clearer than ever—and the journey begins today.
