India embarked on a transformative phase in its tax journey with the launch of GST Bachat Utsav on September 22, 2025, ushering in simplified rates and unprecedented consumer benefits. This nationwide “festival of savings” comes at a perfect time as the festive season begins, promising substantial financial relief to households and businesses through GST 2.0 reforms.
What Is GST Bachat Utsav?
GST Bachat Utsav signifies more than just a reduction in the Goods and Services Tax—it marks the culmination of years of stakeholder consultations and the government’s commitment to simplify the tax regime for every Indian. Prime Minister Narendra Modi announced the event, highlighting its immediate impact on purchasing power and the ease of daily expenses. The initiative aligns with India’s vision of “Aatmanirbhar Bharat", supporting domestic production and self-reliance.
Key Features of the New GST Structure
- Only two simplified GST slabs now exist: 5% and 18%, with a 40% compensation cess restricted to luxury and sin goods.
- Almost all items previously in the 12% category now fall under 5%, making daily essentials like food, medicines, toiletries, and insurance cheaper.
- Items that were taxed at 28%, especially auto components and household appliances, now mostly attract 18%, while luxury automobiles shift to the new 40% bracket.
- The tax changes directly benefit the poor, middle class, neo middle class, women, youth, farmers, traders, and entrepreneurs.
Direct Savings for Every Indian Family
The government estimates annual savings exceeding ₹2.5 lakh crore as GST reforms combine with earlier income tax changes—for instance, income up to ₹12 lakh is now tax-free. This double bonanza increases household budget flexibility and encourages increased demand for essentials and consumer durables during the festive period.
Impact on Businesses and MSMEs
Small businesses, MSMEs, and cottage industries are set to thrive under the new structure, with reduced tax burdens translating into higher competitiveness and sales. The government’s Swadeshi push, urging citizens to prefer Indian-made products, is expected to boost the domestic manufacturing sector and support India’s global economic ambitions.
Sectoral Benefits: What’s Cheaper Now?
|
Item Type |
Old GST Rate |
New GST Rate |
Benefit |
|
Food, Medicines |
12%/5% |
5% |
Cheaper |
|
Two-wheelers, Small Cars |
28% |
18% |
More affordable |
|
Large Cars, Luxury |
28% + cess |
40% |
High-end only |
|
TVs, Appliances |
28% |
18% |
Lower prices |
|
Insurance, Toothpaste |
12% |
5% |
More accessible |
|
Hotel Rooms |
Variable |
Lowered slabs |
Budget travel |
The reforms also support retail, FMCG, and e-commerce channels, with price drops expected to drive holiday season sales.
Swadeshi and Self-Reliance Push
A unique aspect of GST Bachat Utsav is the government’s call to buy and sell Swadeshi products. By choosing domestically made goods, Indians help strengthen local industries and transform every household and marketplace into symbols of self-reliance.
Conclusion: Why GST Bachat Utsav Matters?
GST Bachat Utsav is more than a policy update; it is a celebration of savings, progress, and inclusion. By simplifying the tax system and reducing rates, the government enables families to enjoy greater financial freedom, supports businesses in scaling new heights, and transforms India’s growth trajectory—setting the tone for a more prosperous and equitable future.
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