Prime Minister Narendra Modi on Sunday declared the start of a nationwide GST Bachat Utsav with the implementation of next-generation Goods and Services Tax (GST) reforms from September 22, 2025. Addressing the nation on the eve of Shardiya Navratri, he said the reforms will make goods and services cheaper, simplify compliance, and give a big boost to the dream of Aatmanirbhar Bharat.
The Prime Minister said the reforms would bring relief to poor families, middle-class households, farmers, women, traders, and entrepreneurs, making this festive season one of increased savings and affordable purchases.
“From tomorrow, across the country, a GST Bachat Utsav will begin. Your savings will increase and you will be able to purchase your favourite items more easily,” PM Modi said.
GST Bachat Utsav: A Festive Gift for Citizens
Calling the reforms a festive gift, Modi stressed that the reduction in GST rates would accelerate India’s growth, make business easier, attract investments, and ensure every state shares in the benefits of development.
He reminded citizens that the implementation of GST in 2017 marked the end of the old tax maze and the beginning of “One Nation, One Tax.” The new simplified structure builds on that promise, making purchases smoother and household expenses lighter.
New GST Slabs Under Next Gen GST Reforms
The reforms, approved in the 56th GST Council meeting, will replace the earlier four-rate system with a streamlined two-slab structure of 5% and 18%, while luxury and sin goods remain at 40%.
Here’s a breakdown of key changes:
| Sector / Product | Earlier GST Rate | New GST Rate |
|---|---|---|
| Essential goods (food, soaps, medicines, insurance) | 12% / 18% | 5% |
| FMCG & Dairy (milk, butter, ghee, paneer, ice cream) | 12% | 5% |
| Automobiles (two-wheelers <350cc, small cars, auto parts) | 28% | 18% |
| Tractors under 1800cc | 12% | 5% |
| Cement | 28% | 18% |
| Building materials (granite, marble, bricks) | 12% / 18% | 5% |
| Renewable energy equipment | 12% | 5% |
| Hotels up to ₹7,500 per day | 12% | 5% |
| Services (gyms, salons, yoga centres) | 18% | 5% |
| Luxury & sin goods (tobacco, yachts, aerated drinks) | 28%+cess | 40%+cess |
Industry-Wise Benefits of GST Bachat Utsav
- FMCG & Dairy: Amul and Mother Dairy have cut prices.
- Amul butter (100g) reduced to ₹58 from ₹62.
- UHT milk reduced to ₹75/litre from ₹77.
- Automobile Sector: Two-wheelers, small cars, and auto parts shifted to 18%. Tractors at 5%. This is expected to boost demand and employment.
- Housing & Construction: Cement moved to 18%, while granite and bricks are down to 5%, making homes more affordable.
- Agriculture: Farm equipment like harvesters, sprinklers, and drip systems now at 5%.
- Healthcare & Pharma: Over 30 life-saving drugs fully exempt; essential medicines and devices now at 5%.
- Services: Hotels under ₹7,500, salons, gyms, and yoga centres now at 5%.
- Education: Stationery like pencils, erasers, and notebooks fully exempt; geometry boxes at 5%.
- Renewable Energy: Solar and wind equipment at 5%, reducing project costs by up to ₹25 lakh/MW.
Frequently Asked Questions (FAQ)
Q1: What is GST Bachat Utsav?
GST Bachat Utsav is the government’s term for the new GST reforms starting September 22, 2025, aimed at reducing taxes on essentials and increasing citizens’ savings.
Q2: What are the new GST slabs?
The revised GST system has two main slabs: 5% and 18%, with a special 40% slab for luxury and sin goods.
Q3: How will GST Bachat Utsav benefit common people?
Essential goods like food, medicines, dairy, and building materials are now cheaper. Citizens will save money during the festive season while businesses will face reduced compliance.
Q4: Which industries benefit the most?
FMCG, dairy, automobiles, housing, agriculture, textiles, renewable energy, healthcare, and education are among the top beneficiaries.
Q5: Does this reform align with Aatmanirbhar Bharat?
Yes. By lowering GST rates and supporting MSMEs, the reforms push India towards self-reliance and inclusive growth
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