NextGen GST launch: PM Modi urges MSMEs to make India self-reliant

Prime Minister Narendra Modi on Sunday announced the launch of the government’s NextGen GST reforms and the start of a nationwide “GST Utsav” from the first day of Navratri, which he described as a festival of savings for the public.

In his address, the Prime Minister framed the measure as an immediate relief to consumers and a structural update for business compliance. “Next-gen GST reforms are being implemented from tomorrow; it is like a ‘GST saving festival, PM Modi said. "From tomorrow, you will be able to buy your favourite items with ease. This is like a GST saving festival for every Indian," the Prime Minister added.

Policy overview

The reforms, announced earlier this month after a GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman on September 3, include a reworking of tax slabs and a set of technology-enabled compliance measures. The government has slashed the 12% and 28% slabs; at the same time, a 40% slab will remain in place for luxury and sin goods. The 40% category covers items cited by the government as tobacco products, pan masala, aerated sugary drinks, luxury vehicles, high-end motorcycles above 350 cc, yachts, and helicopters.

What NextGen GST will introduce:

• Simplified tax slabs intended to reduce confusion for businesses.
• Real-time input tax credit reconciliation using AI and blockchain.
• A new compliance rating system for businesses.
• Automated refunds for exporters and MSMEs.
• Enhanced interstate coordination to ease logistics and supply chains.

Sectors and consumer impact

The package is intended to affect a broad set of items and industries. The reforms target essential and trade-facing categories, including leather, footwear, paper, textiles, handicrafts, toys, packaging, and logistics. The brief asserts that prices of kitchen staples, electronics, medicines, equipment, and automobiles will fall from Monday as reduced GST rates on about 375 items come into effect.

MSMEs: duties and delivery

The Prime Minister singled out micro, small and medium enterprises (MSMEs) in his address, urging them to scale production with an eye on global markets and self-reliance. In messaging circulated ahead of and during the address, it was stated: MSMEs HAVE A HUGE RESPONSIBILITY TO MAKE INDIA SELF-RELIANT: PM MODI. 

"To achieve the goal of a 'Viksit Bharat' (Developed India), we must follow the path of 'Atmanirbharta' (self-reliance), and a significant responsibility to make India self-reliant lies with our MSMEs. Whatever the people of our country need and whatever we can produce domestically, we should make right here in India. The reduction in GST rates, along with the simplification of rules and procedures, will greatly benefit our MSMEs, small industries, and cottage industries. Their sales will increase, and they will pay less tax, giving them a double advantage." 

Watch the video here:

VIDEO | Prime Minister Narendra Modi (@narendramodi) says, "To achieve the goal of a 'Viksit Bharat' (Developed India), we must follow the path of 'Atmanirbharta' (self-reliance), and a significant responsibility to make India self-reliant lies with our MSMEs. Whatever the people… pic.twitter.com/lVBJ1ChL4V

— Press Trust of India (@PTI_News) September 21, 2025

The reforms are presented as both immediate relief for consumers and a longer-term set of operational changes, for example, automated refunds and compliance ratings that could lower administrative friction for smaller firms if implemented as described.

Political and contextual notes

The address also coincided with Navratri and Mahalaya observances; the Prime Minister extended festival greetings in the same communications, writing, “Wishing you all Shubho Mahalaya! As the sacred days of Durga Puja draw near, may our lives be filled with light and purpose. May the divine blessings of Maa Durga bring unwavering strength, lasting joy and wonderful health,” he wrote on X. The government’s release placed the reforms in context by noting past occasions when national addresses were used for major policy announcements.

What to watch next

Officials and affected businesses will now look for implementing guidance and operational details — for example, the exact list of items moved between slabs, the timetable for the technology rollouts (AI/blockchain reconciliation and compliance ratings), and the procedures for automated refunds. The brief supplied with the announcement presents those features as core elements of the NextGen package, and the immediate consumer impact is tied to the reduced rates on roughly 375 items.