PM Modi says GST 2.0 to accelerate India's growth, highlights importance of 'atmanirbharta'

Prime Minister Narendra Modi said on Sunday that the next-generation GST reforms will accelerate India's growth, as he highlighted the importance of making the country 'atmanirbhar'. Addressing the nation ahead of the rollout of GST 2.0 reforms, the Prime Minister said the next-generation reforms will benefit all sections of society, calling it like a 'bachat utsav' (saving festival).  

In his address, PM Modi also hailed his government for implementing the goods and services tax, saying GST has realised  the 'one nation-one tax' dream. He also spoke about the government's decision to raise income tax exemption limit and said that it, along with GST reforms, will assist people in saving Rs 2.5 lakh crore.

"When you gave us the opportunity in 2014, we made GST our priority in the public interest and in the national interest. We discussed with every stakeholder. We addressed every state's doubts and found solutions to every question. By taking all states on board, India's largest tax reform became possible. It was the result of the efforts of the central and state governments that the country was freed from the web of dozens of taxes, and a uniform system was established for the entire country," PM Modi said.

'25 crore people lifted out of poverty'

Hailing his government, the Prime Minister said that around 25 crore people were lifted out of poverty in the last 11 years. He said these 25 crore people, known as the neo-middle class, are playing a crucial role in India's growth story. 

'Reform a continuous process'

Explaining his government's plan to implement GST 2.0, PM Modi said reform is a continuous process, stressing that a nation's needs change with time. The GST reforms, he said, were brought only after considering India's 'current needs and future dreams'. 

"In the new form, there will now be only 5% and 18% tax slabs. This means that most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only a 5% tax will have to be paid," he noted.

PM Modi pushes for 'atmanirbharta'

In his address, the Prime Minister also highlighted the importance of making India self-reliant, calling it an important step to achieve the goal of making the country developed. He also urged people to buy Made in India products, saying that the country needs to make every home a 'symbol of Swadeshi'.

He also urged all state governments to join the campaign of 'Atmanirbhar Bharat'.

"To reach the goal of a developed India, we must walk on the path of self-reliance, and a very big responsibility to make India self-reliant also lies on our MSMEs. What is needed by the people of the country, what we can make in our own country, we should make right here in the country," he said. 

"The reduction in GST rates and the simplification of rules and procedures will greatly benefit our MSMEs, small industries, and cottage industries. Their sales will increase, and they will have to pay less tax, meaning they will also receive a double benefit," he added.