New Delhi: Bharat is set to witness the most significant revamp of the Goods and Services Tax (GST) regime since its introduction in 2017, with a simplified two-slab tax structure coming into effect from September 22, 2025. The government has announced that the majority of goods and services will now fall under two categories—5 per cent and 18 per cent—while a 40 per cent levy will apply only to ultra-luxury items.
Prime Minister Narendra Modi hailed the reform as a transformative step towards strengthening the country’s economic foundation, describing it as a “GST Savings Festival” that will benefit every section of society. “Our country’s poor, middle class, new middle class, youth, women, and farmers will get a huge benefit from this savings festival. These reforms will accelerate the growth story of the country, make business easier, and investments more attractive,” the Prime Minister said.
#WATCH | Prime Minister Narendra Modi begins his address to the nation, extending best wishes for Navratri starting tomorrow.
He announces that from the first day of Navratri, Bharat will take an important step towards Aatmanirbhar Bharat as Next-Generation GST reforms come into… pic.twitter.com/AqZAboJe7M
— Organiser Weekly (@eOrganiser) September 21, 2025
The new GST structure is expected to bring relief to consumers by reducing prices on essential goods and services, while also simplifying compliance for businesses. According to government officials, the reform will eliminate complexities associated with multiple tax slabs, creating a more transparent and predictable taxation system.
The Prime Minister further emphasised that the reform would make each state an equal participant in India’s race toward development, ensuring a level playing field for growth across regions. Significantly, the move also aligns with the government’s vision of Atmanirbhar Bharat, with the new system coming into force on the first day of Navratri.
#WATCH | PM Narendra Modi says the festive season will bring sweetness and happiness to every family as he extends heartfelt congratulations and best wishes for the Next Generation GST reforms and ‘Bachat Utsav’.
He highlights that these reforms will accelerate Bharat’s growth… pic.twitter.com/tN0jyO7rdd
— Organiser Weekly (@eOrganiser) September 21, 2025
Economists believe the simplified GST regime will improve tax compliance, broaden the base, and attract greater investments. For ordinary citizens, the “GST Savings Festival” promises to raise purchasing power and bring happiness to families across the nation.
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