‘One Nation, One Tax’ to ‘Bachat Utsav’: PM Modi Marks India’s Biggest Indirect Tax Reform Since Independence

New Delhi: Prime Minister Narendra Modi on Sunday said that India’s Next Generation GST reforms are not just tax changes but a continuation of the historic “One Nation, One Tax” journey that began in 2017. Addressing the nation, he announced the launch of ‘GST Bachat Utsav’ from the first day of Navratri, promising cheaper goods, stronger industries, and higher savings for families.

“Reform is a continuous process. As times change and the country’s needs change, next-generation reforms are equally necessary,” PM Modi said.

The Prime Minister recalled the difficulties before GST was introduced. “There was a time when sending goods from Bengaluru to Hyderabad was so complicated that companies preferred to first send them to Europe and then bring them back. Our traders were trapped in dozens of taxes—octroi, entry tax, VAT, excise, service tax… The poor and the common people had to bear the burden of these costs. GST freed India from that web.”

PM Modi described the new tax structure as simpler and people-friendly. “There will now be only two slabs—5% and 18%. Out of items earlier taxed at 12%, 99% have now moved to 5%. Essential items, medicines, and daily-use goods will become cheaper, directly benefiting the poor, the neo-middle class, and the middle class.”

He also highlighted the rise of a new socio-economic group. “In the last 11 years, 25 crore people have defeated poverty and become part of the neo-middle class. This group has aspirations and dreams of its own. With income tax exemption up to ₹12 lakh and GST rate cuts, they now enjoy a double bonanza.”

Calling the reforms historic, the Prime Minister said, “When you gave us the opportunity in 2014, we made GST our priority. We engaged with every state, cleared doubts, and built consensus. The result was India’s largest tax reform. Today, with GST 2.0, we are writing a new history.”

He also extended festival greetings, saying, “In this festive season, every family’s happiness will increase, every household will taste the sweetness of savings. These reforms will accelerate India’s growth story, attract investment, simplify business, and make every state an equal partner in development.”