Centre Flags off GST Bachat Utsav: PM Narendra Modi & FM Nirmala Sitharaman Meet with Vendors for Feedback
The Centre touts the “GST Bachat Utsav” to boost household savings and directly benefit every section of society
GST
GST
The Government of India today launched the Goods and Services Tax (GST) Bachat Utsav, marking the nationwide rollout of Next-Generation GST reforms, effectively slashing rates on many goods and services while also revising the GST rate structure.
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman interacted with traders and shopkeepers across different locations of India to take stock of early responses to the reforms.
In a letter released to coincide with the festive season, Prime Minister Modi described the reforms as a “GST Savings Festival”, emphasising that they will boost household savings and directly benefit every section of society - from farmers and workers to traders, MSMEs, and the middle class.
A key feature of the latest reforms is the shift to a two-rate structure of 5% and 18%, with daily essentials such as food, medicines, soaps, toothpaste, and insurance either exempted or brought under the 5% slab. Items earlier taxed at 12% now fall to 5%. In the letter, PM Modi said the changes will reduce household expenses and help families pursue aspirations like housing, vehicles, education, and family vacations.
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He added that the combined effect of income tax cuts and GST reforms could result in savings of nearly ₹2.5 lakh crore for citizens. Calling GST a turning point since its 2017 rollout, Modi reiterated that the new reforms take the system further by simplifying taxes, reducing rates and putting “more savings in the hands of the people”.
The Prime Minister also appealed to traders and citizens to support Made in India products, underlining that buying Swadeshi directly sustains artisans, workers, and small industries. “Let us proudly say — what we buy is Swadeshi, what we sell is Swadeshi,” the letter read.
Interactions with Stakeholders
While in Itanagar, Arunachal Pradesh, Modi met traders and entrepreneurs who voiced appreciation for the reforms, noting benefits for fisheries, agriculture, organic products and tourism. He reiterated the importance of maintaining quality standards while promoting local goods. “Prosperity, growth and empowerment! This interaction is a strong reflection of why India is so optimistic about the GST Bachat Utsav,” Modi wrote on X.
https://x.com/narendramodi/status/1970076203533910022
In New Delhi, Finance Minister Nirmala Sitharaman visited a stationery shop in Laxmi Nagar where the owner shared that rate cuts on stationery items had already brought down prices by nearly 10% since the rollout of the new regime from the sunrise on 22 September, 2025.
The shopkeeper noted that students and parents were the immediate beneficiaries. Sitharaman, joined by Minister of State H.D. Malhotra, symbolically handed roses to the vendor in a symbolic gesture.
https://x.com/nsitharamanoffc/status/1970080868061573269
With reductions across essential goods and services, corrections in duty structures, and exemptions for insurance and medicines, the GST Bachat Utsav is positioned as a national festival of savings.
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