Greater Noida, Sep 25 (PTI) Prime Minister Narendra Modi on Thursday lashed out at the Congress and other Opposition parties for misleading people on GST rate cuts, and countered their narrative by citing examples of reduced prices of items ranging from toothpaste to tractors.

Modi also asserted that during Congress-led governments, there was "tax loot" and people were burdened with heavy taxes.

Addressing a gathering after inaugurating UP International Trade Show (UPITS) here, the Prime Minister said just three days ago (September 22), next-generation goods and services tax (GST) reforms were implemented.

Describing them as "structural changes" that will give new wings to India's growth story, he said the reforms will simplify GST registration, reduce tax disputes, and accelerate refunds for MSMEs, benefiting every sector.

"Despite this, some political parties are attempting to mislead people of the country. The Congress and its allies, who were running the government before 2014, are lying to the public to hide failures of their government.

"The truth is that during Congress governments, there was rampant looting through taxes, and even the looted money was being looted further. The common citizens of the country were suffering due to the burden of taxes," he said.

Modi, took over as Prime Minister in 2014, said his government has significantly reduced taxes, curbed inflation, and increased both income and savings for people.

He said by making income up to Rs 12 lakh tax-free and implementing new GST reforms, citizens are set to save Rs 2.5 lakh crore this year alone.

The nation is celebrating the GST Bachat Utsav (Savings Festival), Modi added.

The Prime Minister further said stakeholders have experienced three distinct phases -- pre-GST, post-GST, and now the next-generation GST reforms -- and emphasised the significant difference these have made.

Before 2014, Modi said the multitude of taxes made it difficult to manage both business costs and household budgets.

A shirt priced at Rs 1,000 attracted nearly Rs 170 in taxes before 2014. After the introduction of GST in 2017, this dropped to Rs 50. With the revised rates effective from September 22, the same Rs 1,000 shirt now incurs only Rs 35 in tax, he said.

Elaborating further, Modi illustrated the tangible benefits of GST reforms with a relatable example.

He said in 2014, spending Rs 100 on essentials like toothpaste, shampoo, hair oil, and shaving cream incurred Rs 31 in taxes, pushing up the bill to Rs 131.

After introduction of GST in 2017, the same Rs 100 worth of goods cost Rs 118, resulting in direct saving of Rs 13.

With the latest generation of GST reforms, this cost has further reduced to Rs 105, yielding a total saving of Rs 26 compared to pre-2014 rates, the PM said.

Modi further said a household spending Rs 1 lakh annually on necessities in 2014 would have incurred Rs 20,000-25,000 in taxes.

Today, under the new GST regime, the same family pays only Rs 5,000-6,000 annually, as most essential items now attract just 5 per cent GST, he said.

Emphasising the importance of tractors in rural economy, he said that prior to 2014, purchasing a tractor incurred over Rs 70,000 in taxes. Now, the same tractor attracts only Rs 30,000 in tax, resulting in a direct saving of more than Rs 40,000 for farmers, the Prime Minister said.

Also, three-wheelers, a major source of employment for the poor, previously attracted Rs 55,000 in tax, which has reduced to Rs 35,000, leaving a Rs 20,000 saving in the hands of buyers.

He also cited the example of reduction of taxes on two-wheelers.

Due to lower GST rates, he said scooters are now Rs 8,000 cheaper and motorcycles Rs 9,000 cheaper compared to 2014.

These savings benefit the poor, neo-middle class, and middle class alike, the Prime Minister said. PTI RSN NKD RSN TRB TRB

Next-generation GST reforms simplify registration and cut indirect tax burdens, reducing consumer prices and easing compliance nationwide. Next-generation GST reforms implemented on September 22 are described as structural changes to simplify tax administration by streamlining GST registration, accelerating refunds for MSMEs, and reducing tax disputes. The reforms include rate rationalisations that lower effective GST incidence on consumer goods and vehicles, yielding reduced consumer prices and decreased tax burdens for households, farmers and small businesses compared to the pre-GST era.