By Shishir Sinha

Copyright thehindubusinessline

GST rate cuts and income-tax benefits announced in this year’s Budget will help Indians save ₹2.5 lakh crore annually, Prime Minister Narendra Modi said on Sunday. New GST rates are going to be implemented from Monday.

“If we combine the income-tax exemption and the GST exemption, the decisions made in one year will save the people of the country more than ₹2.5 lakh crore and that’s why I say, this is a savings festival,” Modi said in an address to the nation.

Video Credit: PTI

“Tomorrow, the festival to worship Shakti, Navratri, is starting. My greetings to all of you. On the first day of Navratri, the country is taking a big step towards Atmanirbhar Bharat,” he said. “I congratulate crores of Indians over these reforms. These reforms will accelerate Bharat’s growth story, enhance ease of doing business, attract greater investment, and ensure that every State becomes an equal partner in the nation’s development,” he added.

Highlighting GST’s role in bringing down logistics cost, the Prime Minister recalled an article published in a foreign newspaper in 2014. It described the difficulties of a company. The company said that if it had to send its goods from Bengaluru to Hyderabad, 570 km away, it was so difficult that they preferred the company to first send its goods from Bengaluru to Europe and then send the same goods from Europe to Hyderabad.

“This was the situation at that time due to the complexities of taxes and tolls. At that time, millions of such companies, along with millions of countrymen, faced daily problems due to the maze of various taxes. The increased expenses incurred in transporting goods from one city to another were borne by the poor, and customers like you were charged. It was essential to free the country from this situation,” he said.

Underlining the criticality of the federal structure in GST reforms, Modi urged the States to boost manufacturing and create a conducive environment for investment.

Published on September 21, 2025