New Delhi: Prime Minister Narendra Modi on Monday wrote an open letter to citizens, hailing the launch of the ‘GST Bachat Utsav’ and calling it a new era of savings for households and businesses. The initiative comes with the rollout of next-generation GST reforms from Monday. Extending greetings for Navaratri, the PM said the new reforms bring “an added reason to rejoice” during the festive season. “Lower GST rates mean more savings for every household and greater ease for businesses,” he wrote.

The Prime Minister said the reforms will benefit all sections of society, including farmers, women, youth, the poor, middle class, traders and MSMEs.

The next-generation GST overhaul simplifies taxation into mainly two slabs — 5% and 18%. Essential goods such as food, medicines, soap, toothpaste, and insurance will either be tax-free or fall under the 5% slab. Goods earlier taxed at 12% have mostly shifted to 5%.

According to Modi, when combined with recent income tax cuts, the GST reforms will provide savings of nearly Rs 2.5 lakh crore to citizens. “Your household expenses will reduce, and aspirations like building a home, buying a vehicle, appliances, or planning vacations will become easier,” he said.

Modi highlighted that since GST’s introduction in 2017, the system has unified India’s economy under the “One Nation, One Tax” principle. The latest reforms, he said, go further in reducing rates and putting “more savings in the hands of people.”

He added that 25 crore people have risen above poverty in recent years, forming a new aspirational middle class, and that these reforms will accelerate growth, attract investments, and strengthen India’s local manufacturing base. Reiterating the goal of Viksit Bharat by 2047, the PM said self-reliance is key. “Let us proudly say – what we buy is Swadeshi, what we sell is Swadeshi,” he urged traders and citizens, appealing for greater support to Made in India products.