We Are Not Stopping Here: PM Modi Signals More GST Reforms After Recent Tax Cuts
New Delhi, September 22, 2025 – Prime Minister Narendra Modi has once again stirred political and economic discussions with his latest remarks on Goods and Services Tax (GST) reforms. Just a day after announcing a significant reduction in GST rates on September 22, coinciding with the first day of Navratri, the Prime Minister assured that this is not the final step. He hinted at further tax cuts and reforms in the coming years, reinforcing the government’s vision of easing the tax burden on citizens and strengthening India’s economy.
Speaking at the inauguration of the Uttar Pradesh International Trade Show, PM Modi elaborated on the savings generated due to GST reforms and explained how these changes have transformed the taxation system since 2017. “Today, the country is celebrating a GST savings festival. But I want to make it clear – we are not stopping here. In 2017, we introduced GST to simplify the tax system and strengthen the economy. By 2025, we will further establish it in a stronger form. As our economy grows, the tax burden will continue to decrease. With the blessings of the people, our reform process will move forward,” he said.
Massive Tax Relief Since 2014
The Prime Minister compared the current scenario with the pre-2014 taxation system, highlighting how multiple taxes had made life difficult for both businesses and households. “Before 2014, a purchase of ₹1 lakh attracted almost ₹25,000 in taxes. Today, that amount has been reduced to just ₹5,000–₹6,000,” he stated.
Providing detailed examples, PM Modi explained how GST has brought down the cost of everyday goods. A shirt priced at ₹1,000 used to attract ₹117 in taxes before GST. After the 2017 GST rollout, the tax dropped to ₹50, and after the September 22 reforms, it is now only ₹35. Similarly, essential items like toothpaste, oil, and shampoo that once carried a tax of ₹31 per ₹100 in 2014, were reduced to ₹18 in 2017, and now cost consumers only ₹5 in additional tax.
Cheaper Tractors, Scooters, and Motorcycles
The Prime Minister also pointed out how GST reforms have directly benefited farmers and the middle class. In 2014, a tractor attracted more than ₹70,000 in tax. Today, the same tractor carries only ₹30,000 in tax, saving farmers nearly ₹40,000. Three-wheeler vehicles that once bore ₹55,000 in tax are now taxed at ₹35,000, offering savings of ₹20,000. Two-wheelers have also become more affordable – scooters are now cheaper by ₹8,000 and motorcycles by ₹9,000 – giving relief to millions of households.
“GST is not just about economic reform; it is about empowering the poor and middle-class families by reducing their daily expenses,” Modi asserted.
Attack on Congress
While detailing the benefits of tax exemptions, PM Modi also took a sharp dig at the Congress party, accusing it of misleading the public. “Some political parties are trying to spread lies to hide their failures before 2014. The truth is that during the Congress regime, tax collection was a form of exploitation. Ordinary citizens were crushed under the weight of taxes. Our government has reduced both taxation and inflation, resulting in higher incomes and greater savings,” he said.
He further emphasized how the government has expanded tax reliefs under income tax. In 2014, income up to ₹2 lakh was tax-free. Today, individuals earning up to ₹12 lakh enjoy tax exemption. According to him, combined income tax and GST reliefs have resulted in savings worth ₹2.5 lakh crore for citizens.
Concluding his address, PM Modi reiterated that GST reforms are a continuing process. “We are moving ahead step by step, and our mission is to create a robust, transparent, and citizen-friendly tax system that supports India’s growth journey,” he said.
