Prime Minister Narendra Modi appreciated the reforms made in UP International Trade Show 2025.
For the first time, PM Modi spoke of GST reform from the Red Fort. After this, on 3 September, the GST Council announced this reform and it was also implemented from 22 September. Now PM Modi has once again said that the improvement in GST will continue even further and the tax burden on the common people will be reduced further. In the UP International Trade Show, PM Modi said that earlier there was a tax of Rs 117 on a shirt of Rs 1000 (in 2014). Then in 2017, this tax was reduced to 50 rupees. But now after the new GST improvement, this tax has been reduced to just Rs 35.
The country’s economy will be strong due to reduced tax burden
In the UP International Trade Show, PM Modi said that these reforms will directly affect the pockets of the poor and middle class and the tax burden will be reduced. In 2017 GST After implementation, this has been such a big improvement for the first time, which will give a new height to India’s economic development story. He said that tax burden will decrease in the coming time, which will give more relief to the common family and small businessmen. People with income up to Rs 12 lakh annually will now be free from income tax. GST 2.0 improvement will increase people’s savings and the country’s economy will also be strengthened.
Big change in GST rate on clothes
The GST rate on man-maid fibers and yarn has been dropped from 18% and 12% to 5%. This will reduce the production cost of cheap clothes and will directly benefit consumers. Tax on clothes up to Rs 2500 like shirt, saree, kurta etc. has been reduced from 12% to 5%, due to which these goods will be economical. But the tax on expensive clothes from Rs 2500 has been increased to 18%. Apart from this, the tax rate on carpet and textile floor coverings has also been reduced from 12% to 5%.
Everything from clothes to electronics became cheaper
The GST reforms, which came into force from 22 September 2025, have affected everyday life. Food items like cheese, butter, ghee, frozen parantha will now be charged only 5% GST. Household items like toothpaste, hair oil, shampoo have also become cheap. Also, tax rates have been reduced on furniture made of kitchenware, bicycles and bamboo. The GST rate on technology products like TV, fridge and washing machines has also been reduced from 28% to 18%. Health and Life Insurance Premium has now become completely free GST free. But tax on luxury goods such as expensive vehicles, yachts, cigarettes and anted drinks still remain 40%.