'GST Overhaul to Ease Costs and Boost Domestic Industries,' Says PM Modi

 Prime Minister Narendra Modi on Sunday highlighted the transformative impact of GST reforms on businesses and consumers, emphasizing their role in simplifying taxation and reducing costs. Recalling an incident from 2014, shortly after assuming office, Modi cited a foreign newspaper report about a company struggling to transport goods domestically. The firm described the 570 km journey from Bengaluru to Hyderabad as so cumbersome due to multiple taxes and tolls that it considered shipping the goods to Europe first before returning them to Hyderabad.

“The situation reflected the daily challenges faced by millions of companies and citizens,” Modi said. “Increased transport expenses were ultimately borne by the poor, and customers were charged higher prices. It was essential to free the country from this maze of taxes.”

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The Prime Minister stressed that India’s path to development requires self-reliance, with small and medium enterprises (MSMEs) playing a central role. Reduction in GST rates, he noted, will significantly benefit small-scale industries, allowing them to compete on global standards. Modi urged citizens to prioritize domestic products over foreign alternatives and called on state governments to boost manufacturing and create an environment conducive to investment.

He also highlighted the broader economic impact of the reforms. “If we combine income tax exemptions and GST exemptions, the measures implemented in one year will save the people of the country more than Rs 2.5 lakh crore,” he said, describing the reforms as a major financial relief for citizens.

Introduced in July 2017, the Goods and Services Tax is widely regarded as India’s most significant indirect tax reform since independence. It replaced nearly 17 central and state levies and over 20 cesses, creating a unified national market. While the rollout initially faced compliance challenges for small businesses, successive rate rationalisations, including the recent two-rate structure, have aimed to simplify taxation and boost economic efficiency.

Modi concluded by linking the reforms to his mantra of “Nagrik Devo Bhava,” highlighting the citizen-centric focus of GST measures. He urged MSMEs to aspire to global standards and reiterated the government’s commitment to reducing costs, simplifying operations, and promoting domestic production.