Prime Minister Narendra Modi on Saturday announced sweeping reforms under the Goods and Services Tax, describing them as a next-generation overhaul that will simplify the system and increase savings for households. Linking the changes with the start of Navratri, he said the move would bring economic relief to citizens and mark the beginning of a festival of savings.
Starting September 22, more than 400 items that were earlier taxed at 12 percent and 18 percent will now fall into the 5 percent or zero-tax categories. Essential items such as medicines, insurance and daily-use products will see reduced rates, while luxury and sin goods will continue under higher slabs of 18 percent and 40 percent. The government estimates that the reforms, combined with recent income tax exemptions, will generate savings of nearly 2.5 lakh crore rupees for the public. The Prime Minister also launched what he called the GST Bachat Utsav to underline the scale of relief being given to consumers.
BJP leaders welcomed the announcement and framed it as a symbolic and historic step. Party MP Praveen Khandelwal said Navratri is bringing a new dawn for India and credited Prime Minister Modi for the reforms. He noted that more than 400 items had been moved to lower tax brackets, which would make essentials cheaper, and assured that the country&rsquo;s traders would pass on every benefit to consumers.
The party has presented the reforms as proof of its commitment to citizen-first governance and as a continuation of the Atmanirbhar Bharat vision. Economists believe the changes will encourage spending during the festive season, although they also stress the need for strict monitoring to ensure that traders actually pass on the benefits to buyers. The announcement on the eve of Navratri has been projected by the BJP as the beginning of a new dawn for India&rsquo;s economy.

PM Modi links GST reforms with Navratri savings

Over 400 items moved to lower tax slabs, BJP hails reforms as India’s economic new dawn

PM Modi links GST reforms with Navratri savings

Over 400 items moved to lower tax slabs, BJP hails reforms as India’s economic new dawn

September 21, 2025 | 23:41 IST