The Bharatiya Janata Party (BJP) is set to launch a nationwide "GST Savings Festival" from September 22 to 29, 2025. This initiative aims to educate traders and the public about the benefits of the Goods and Services Tax (GST), highlighting its contribution to savings and transparency. The campaign precedes the festive season and focuses on public engagement and economic messaging at the grassroots level.
As part of the campaign, Members of Parliament (MPs) have been tasked with organizing foot marches in their respective constituencies. The goal is to engage with local traders and consumers, promoting indigenous goods and displaying campaign messaging. This public outreach seeks to underscore how GST has simplified the tax structure, reduced the tax burden on many items, and ultimately benefited citizens and industries.
The "GST Savings Festival" follows a recent GST overhaul that aims to simplify the tax system and reduce rates on various goods and services. Effective September 22, 2025, the revised GST structure will feature two primary slabs: 5% for essential items and 18% for standard goods. A 40% slab will be imposed on luxury and sin goods. Essential items such as food products, medicines, milk-based products, electric vehicles (EVs), and insurance will fall under the 5% slab, while electronics, cement, vehicles, and apparel will be taxed at 18%.
According to Chhattisgarh Chief Minister Vishnu Deo Sai, the GST reforms under Prime Minister Narendra Modi's leadership have ushered in a new revolutionary economic era. He noted that prior to GST, India had 17 types of taxes and 13 types of cesses. The simplification of GST slabs and the reduction of taxes on many items are expected to benefit both citizens and industry.
The GST Council's decision to reduce tax rates on approximately 375 items is expected to lead to cheaper prices on a wide range of goods and services. Mass consumption items like ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee, and ice creams, as well as aspirational goods like TVs, ACs, and washing machines, will become more affordable. Essential goods will be zero-rated. It is estimated that about 99% of goods currently under the 12% GST slab will move to the 5% slab, and 90% of items under the 28% tax slab will come down to the 18% bracket.
The reforms are anticipated to provide a major boost to Micro, Small, and Medium Enterprises (MSMEs), the textile sector, and especially agriculture. For farmers, GST rates on tractors, harvesters, and rotavators have been reduced to 5%, resulting in significant savings. Lower GST rates on agricultural machinery, fertilizers, bio-pesticides, irrigation equipment, and drip and sprinkler systems will also reduce costs and increase profitability for cultivators. The removal of GST on health and life insurance is considered a landmark step in strengthening social security.
Finance Minister Nirmala Sitharaman has emphasized that companies must pass on the benefits of lower GST rates to consumers. The government is closely monitoring prices and working with industries to ensure that the gains are fully transferred. The new rates, effective from September 22, 2025, coincide with the start of the Navratri festival season, which typically sees a surge in consumer spending. The Finance Minister expects that the reduction in rates will offer a significant boost to consumption and growth.
