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Next-Gen GST Cuts Taxes, PM Modi Says Rs 1,000 Shirt Now Attracts Only Rs 35 Tax

Prime Minister Narendra Modi emphasised on the structural reforms in the Goods and Services Tax (GST) which will 'give new wings to India's growth story'.

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Key points generated by AI, verified by newsroom
  • Next-gen GST reforms lowered taxes, easing business and family budgets.
  • Further reforms aim for a fairer, growth-oriented tax system.
  • India pushes self-reliance, boosting defence and innovation sectors.

Prime Minister Narendra Modi today said that the government’s next-generation GST reforms have not only lowered the tax burden on the poor and middle class but also boosted the ease of doing business in India.

While addressing the inauguration of the Uttar Pradesh International Trade Show 2025, Modi emphasised on the structural reforms in the Goods and Services Tax (GST) which will 'give new wings to India's growth story'.

The Prime Minister recalled how the implementation of GST in 2017 was a game-changer for the indirect tax regime. The government has since carried out further reforms, including the latest changes in September 2025, aimed at simplifying India’s taxation system.

Comparing Tax Eras: UPA vs NDA

While comparing the differences in the taxes between the UPA government and the NDA government, Modi said that before 2014, there were so many taxes that both businesses and families could not balance their budgets.

"In 2014, a Rs 1,000 shirt carried a tax of Rs 117. After the implementation of GST in 2017, that tax came down to Rs 50. Now, after the NextGen GST reform, only Rs 35 will have to be paid on a Rs 1,000 shirt," the Prime Minister added.

According to Modi, these reforms ensure a fairer and growth-oriented system. He added that reducing GST rates has benefitted both households and small traders by ensuring a level playing field, curbing tax evasion, and bringing transparency.

More Relief For Taxpayers Ahead 

Further, Modi added, "We are not going to stop here...As the economy strengthens further, the tax burden will keep going down...With countrymen's blessings, reforms in GST will continue".

Modi also pointed to other measures aimed at fairness in taxation, including no income tax for individuals earning up to Rs 12 lakh annually and the introduction of GST 2.0 reforms. These steps, he said, will put more savings into the hands of the people.

Aatmanirbhar Bharat Push

He further added that India is developing a vibrant defence sector and creating an ecosystem where every component is 'Made in India'. He said that the production of the AK-203 rifles will soon begin in a factory set up in Uttar Pradesh, in collaboration with Russia.

Modi further added in his speech that India must become self-reliant and called for increasing investment in research as well as innovation so that each and every product that can be made in India should be made in India.

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