In an open letter to citizens, Prime Minister Narendra Modi has lauded the Goods and Services Tax (GST) reforms, emphasizing their potential to benefit every section of society. Coinciding with the commencement of Navratri, Modi has termed the rollout of these next-generation GST reforms as the beginning of a "GST Bachat Utsav" or "GST Savings Festival" across the country. These reforms, which came into effect on September 22, 2025, aim to simplify taxation, reduce the financial burden on households, businesses, and farmers, and stimulate savings.

According to Modi, the most significant aspect of these reforms is the introduction of a simplified two-slab structure of 5% and 18%. This means that daily essentials, including food, medicines, soap, and toothpaste, will either be tax-free or fall into the lowest 5% tax bracket. Many goods previously taxed at 12% have been moved to the 5% slab. Ultra-luxury items or "sin" goods will face a 40% tax. Tobacco and related products will remain in the 28% bracket, along with an additional cess.

The Prime Minister highlighted that reduced GST rates would provide relief to the poor and the neo-middle class. He estimated that Indians would save ₹2.5 lakh crore with the GST rate revisions, in addition to savings from income tax reforms. He stated that the youth, farmers, women, shopkeepers, traders, and entrepreneurs will all benefit from this "Bachat Utsav".

In his letter, Modi appealed to shopkeepers to promote and sell "Made in India" products. He urged citizens to prioritize "Swadeshi" goods, recognizing the efforts of Indian workers involved in their production. He also encouraged state governments to boost their industries and manufacturing processes to foster a better investment climate.

The GST rate cuts will make scores of daily essentials, including cars and electronics, cheaper. Items like snacks, coffee, ghee, paneer, butter, ketchup, jam, dry fruits, and ice cream will also see reduced GST rates.

These reforms are expected to encourage greater growth and investments and accelerate the progress of every state and region. By simplifying taxation and reducing the financial burden on various segments of society, the government aims to promote economic activity and improve the lives of its citizens.