Union Minister Ashwini Vaishnaw announced that sweeping GST rate cuts, effective from September 22, 2025, the first day of Navratri, will bring significant relief to India’s 140 crore citizens. The reforms, which streamline GST slabs to 5% and 18% for most products—excluding sin and luxury goods—and eliminate taxes on essential items, aim to reduce the financial burden on households and propel economic growth. Vaishnaw emphasized that these changes will make everyday goods more affordable, marking a transformative step for middle-class families.
Speaking at a press conference at the BJP headquarters, Vaishnaw criticized the Congress regime’s pre-2014 tax system, which he described as a “complex web” that burdened citizens. “Before 2014, multiple taxes weighed heavily on the common people. These GST reforms reflect Prime Minister Narendra Modi’s commitment to their welfare,” he said, highlighting the government’s efforts to simplify taxation and boost consumption. The reforms, coupled with an income tax exemption up to Rs 12 lakh announced earlier, are poised to stimulate India’s economy, with Vaishnaw estimating a potential Rs 20 lakh crore increase in consumption if it rises by 10%.
The GST Council’s decision follows one and a half years of meticulous planning under Modi’s guidance, with the Prime Minister’s Independence Day promise to lower GST rates by Diwali now coming to fruition. Vaishnaw dismissed speculations linking the reforms to external factors like US tariffs, asserting, “This is about transforming lives, not reacting to external pressures.” He also addressed concerns raised by Congress leader Jairam Ramesh about ensuring benefits reach the masses, stating that Finance Minister Nirmala Sitharaman is maintaining a “hawk’s eye” to ensure compliance. Strict action will be taken against businesses failing to pass on savings to consumers, Vaishnaw added, citing trade associations’ commitments to comply.
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The reforms have drawn praise for their potential to make essentials like food, healthcare, and automobiles more affordable while fostering economic growth. Opposition parties, including Congress and TMC, have cautiously welcomed the changes, though some criticized the timing. Vaishnaw reiterated Modi’s vision of an “Aatmanirbhar Bharat,” emphasizing that the reforms align with India’s broader economic and diplomatic strategies, including strengthened India-US ties. As Navratri approaches, these changes promise a festive season of savings and prosperity for millions.
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