'Festival of Savings': PM Modi Celebrates ‘GST Bachat Utsav’, Says Reforms To Boost Savings And Growth

Prime Minister Narendra Modi on Sunday announced the launch of the ‘GST Bachat Utsav’, describing it as a “Festival of Savings” that will commence nationwide from September 22. He said the move will enable citizens to increase their savings while purchasing their everyday and favourite items.

“The GST Bachat Utsav will benefit all sections of society,” the Prime Minister said, adding that the rationalised Goods and Services Tax (GST) structure would lower costs on essential items, medicines and insurance. He said the reform would “bring happiness to every family and accelerate India’s growth story.”

Reflecting on the introduction of GST in 2017, Modi said it had replaced a complex web of levies such as octroi, entry tax, excise, VAT and service tax. “For decades, our people and traders were entangled in dozens of taxes. To send goods from one city to another, we had to cross countless checkpoints,” he recalled.

The launch coincides with the rollout of a two-rate GST structure, following the GST Council’s decision earlier this month to merge the 12% and 28% slabs into two main rates of 5% and 18%. Essential food items, kitchen goods, farm equipment, handicrafts and medical devices will be taxed at 5%, while automobiles, consumer electronics, household goods and professional services will fall under the 18% slab. A 40% levy will remain on luxury and sin goods, including tobacco, aerated drinks, luxury vehicles and yachts.

Also Read: One Nation, One Tax: PM Highlights How This Benefits Common Man | Top Points | Republic World

The Goods and Services Tax, hailed as India’s most significant indirect tax reform since independence, was introduced in July 2017 to create a unified national market. It subsumed nearly 17 central and state levies and over 20 cesses. While its rollout initially faced criticism from small businesses over compliance burdens, successive rate rationalisations have sought to simplify the system. Economists say the latest two-rate structure could improve efficiency and help boost consumption, especially during the festive season.

Notably, the Bharatiya Janata Party (BJP) will also hold a nationwide outreach campaign, the ‘GST Savings Festival’, from September 22–29. All BJP Members of Parliament have been directed to organise pad yatras in local markets to raise awareness of the new GST structure. The campaign will be timed with the festive season and is being projected as part of the party’s grassroots economic messaging.