As of today, September 22, 2025, the "Savings Festival" has commenced, coinciding with the rollout of the next generation of Goods and Services Tax (GST) reforms. Prime Minister Narendra Modi announced the start of this "Bachat Utsav" (savings festival) on Sunday, emphasizing that these reforms will lead to lower prices, simplified compliance, and increased investment flows throughout the country.

The Prime Minister highlighted that the GST 2.0 will reduce tax slabs to 5% and 18%, a move expected to simplify business processes, reduce prices, and strengthen the 'Made in India' initiative. He stated, "From tomorrow in the nation, 'GST bachat utsav' will commence. Your savings will increase and you will be able to buy your favourite things. 'GST bachat utsav' will benefit all sections of the society".

These reforms, effective from today, mark a significant restructuring of the GST. The GST Council had previously approved a two-tier structure, eliminating the 12% and 28% slabs. It is estimated that about 99% of goods formerly under the 12% slab will now fall into the 5% bracket, and at least 90% of items previously in the 28% slab will move to the 18% bracket. A compensation cess of 40% will be applied to luxury and sin goods.

PM Modi emphasized that these changes would benefit all sections of society, including the poor, middle class, neo-middle class, youth, farmers, women, shop owners, and traders. He noted that many everyday-use items would become more affordable. He specifically mentioned food items, medicines, soap, toothbrushes, toothpaste, and health and life insurance as examples of goods and services that will either be tax-free or attract only a 5% tax.

The Prime Minister also linked GST 2.0 to the government's 'aatmanirbharta' (self-reliance) agenda, encouraging citizens to prioritize Indian-made goods. He urged both households and shopkeepers to embrace "swadeshi" products, stating, "Just as the country's independence gained strength from the mantra of swadeshi, similarly, the country's prosperity will also derive its power from the mantra of swadeshi alone".

PM Modi credited the collaboration between the Central and state governments for creating "one nation, one tax," freeing citizens and businesses from a "maze of various taxes". He also pointed out that the combined effect of income tax relief and the new GST regime could save citizens over ₹2.5 lakh crore.

The Prime Minister described the upcoming GST changes as a "next-generation reform" that will boost India's economy and provide relief to the middle class, youth, and consumers. He stressed that the reform is not just about reducing prices but also about creating new opportunities, increasing the savings of the middle class, benefiting the youth, and boosting the entire economy. He also stated that when the purchasing power of people rises, it benefits every sector, from industry to agriculture to services.