New Delhi, Sep 21 (PTI) Prime Minister Narendra Modi asserted on Sunday that the GST reforms kicking in from Monday will accelerate India’s growth story, emphasising that it is a big and important step for “aatmanirbhar Bharat” and linking a boost to 'swadeshi' products to the country’s prosperity.

Addressing the nation on the eve of the auspicious Navaratri, which will mark the implementation of the revised GST rates, Modi said swadeshi will render strength to the country’s prosperity in a similar way it powered India’s freedom movement.

"We have to make every home a symbol of swadeshi. We have to decorate every shop with swadeshi (goods)," he said The roll-out of next-generation GST reforms months after his government raised the income tax exemption on annual earnings of up to Rs 12 lakh will be a “double bonanza” for citizens, helping them realise their dreams by slashing expenditure and increasing savings, he said. Citizens will save Rs 2.5 lakh crore from the twin decisions, he said.

He urged states to boost manufacturing and create a conducive atmosphere for investment, saying that when the Centre and states work together, the dream of a self-reliant India will be realised.

He had a message for citizens too. It should be the spirit of every Indian that he says with pride that he purchases or sells made-in-India products, the prime minister said, stressing that it will quicken the pace of the country’s development.

In his over 19-minute address, Modi said the revised GST rates reflect his government’s mantra of “naagrik devo bhawah” (citizens are like gods) as it will bring down the price of everyday items besides cutting expenditure in construction and health sectors.

From tomorrow, it will be like a GST saving festival, he said, adding that it will bring happiness to every family.

"On the first day of Navratri, the country is going to take an important and big step for Atmanirbhar Bharat. With the sunrise tomorrow, the next generation GST reforms will come into effect. A 'GST bachat utsav (savings festival)' will begin tomorrow.

"You will be able to buy things you like more easily. The poor, middle class, neo middle class, youths, farmers, women, traders and shopkeepers will benefit from this," he said.

He congratulated all on the next generation GST reforms. "These reforms will accelerate India's growth story, increase ease of doing business and attract more investors," Modi said.

When India took a step towards GST reforms in 2017, a new beginning was made to script history, he said.

He said GST realised the 'one nation-one tax' dream. Modi highlighted how the web of taxes and tolls had created hardships for businesses and consumers.

He also said the GST move would benefit MSMEs big time and urged the sector to work to restore glory to made-in-India products, noting that goods manufactured in the country were behind its past economic might.

India’s micro, small and cottage industries will have a key role in building a self-reliant India, he said and called for manufacturing as much as possible within the country.

The prime minister also asked people to be more conscious in their choices, noting that they often do not even know the origin of the comb they may carry.

Items of foreign origins have unwittingly become a part of people’s daily lives, he said, exhorting them to ensure that they buy products with an indigenous background.

One should be proud in saying that “I buy swadeshi” or “I sell swadeshi”, he said.

Modi expressed happiness at the business sector "taking a lead" in passing the benefits of the GST rate cuts to consumers.

He noted that under the new structure, only 5 per cent and 18 per cent tax slabs primarily remain. He listed everyday food items, medicines, soap, toothbrush, toothpaste, health and life insurance as among the many goods and services that will either be tax-free or attract only a 5 per cent tax.

Nearly 99 per cent of the items previously taxed at 12 per cent now fall under the 5 per cent tax bracket, he added.

He said for decades, citizens and traders were entangled in a complex web of taxes, amounting to dozens of levies across the nation and adding to the hardships of the business and the price burden of consumers.

Modi recalled a story he had read in a foreign newspaper soon after he took office in 2014 that a company found it more challenging to transport goods from Bengaluru to Hyderabad, a distance of 570 km, due to the multiplicity of taxes than to send its products to Europe and then back to Hyderabad.

The prime minister said he worked with all stakeholders, including states, to allay their concerns and bring them on board to roll out “one nation one tax” in 2017.

From kitchen staples to electronics, from medicines and equipment to automobiles, goods and services will be cheaper from Monday as the reduced GST rates on about 375 items come into effect.

In a bonanza to consumers, the GST Council, comprising the Centre and states, had decided to reduce the tax rates on goods and services, from September 22 -- the first day of the Navaratri.

The GST will now be a two-tier structure wherein the majority of goods and services will attract tax of 5 and 18 per cent. A 40 per cent tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus cess category.

Till now, Goods and Services Tax (GST) was levied in 4 slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.

Mass consumption items like ghee, paneer, butter, 'namkeen', ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC and washing machines will become cheaper. PTI ASK/KR RT

GST rate restructuring will reduce consumer prices and simplify taxation, boosting manufacturing and MSME competitiveness. The government revised the Goods and Services Tax into a predominantly two tier structure, lowering rates on a large number of everyday goods and services while retaining elevated taxation for ultra luxury and sin goods. The reform aims to simplify compliance, reduce consumer prices, increase ease of doing business, and stimulate domestic manufacturing and MSME activity by encouraging pass through of tax benefits and state level investment facilitation.