"Biggest Reform Of Independent India": PM Modi Applauds GST Rationalisation

The rationalisation of Goods and Services Tax -- which is expected to put money in the pockets of the middle class by slashing tax on multiple items and scrapping it altogether for crucial items including bread and life saving drugs -- is the "biggest reform since Independence," Prime Minister Narendra Modi said today. The two tax slabs which would be operational instead of the current four, will come into effect from September 22 -- the first day of Navratri. 

"People will start benefiting from first day of Navratri. This time, Dhanteras will be more vibrant. This is the biggest reform of independent India," PM Modi said. 

During his address at the National Teachers Awards, PM Modi said he had promised "double dhamaka" of next-generation GST reforms before Diwali and Chhath from the ramparts of the Red Fort.

Read: "Congress Even Taxed Children's Toffees": PM Modi Attacks Opposition On GST

"Without timely changes, we cannot give our country its rightful place in today's global context. I had said from the Red Fort on 15 August this time that it is crucial to undertake next-generation reforms to make India self-reliant. I had also promised the countrymen that there would be a double blast of happiness before this Diwali and Chhath Puja," he said.

He said the GST reforms incorporated "Panch Ratna" (five gems) - simpler tax system, better quality of life for citizens, boost for consumption and growth, encouraging investments and job creation through ease of doing business and strengthening cooperative federalism for developed India - to the country's economy.

He also attacked the Opposition Congress, pointing out that when they were in power at the Centre, they taxed anything and everything -- daily essentials, food and medicine. 

The rationalization of GST, announced yesterday by the GST Council, has slashed taxes on multiple items -- including food, medicines, essential items, farm goods, green energy, small cars and bikes. 

Crucial items including life and medical insurance, life saving drugs and food items including dairy products and bread have been made tax free.