Prime Minister Narendra Modi has described the rationalisation of Goods and Services Tax (GST) as the biggest reform since Independence. Mr Modi said the move is expected to put money in the pockets of the middle class by slashing tax on multiple items and scrapping it altogether for crucial items, including bread and life-saving drugs.

The Prime Minister was interacting with award-winning teachers in New Delhi yesterday. Mr Modi said the two tax slabs will come into effect from September 22 — the first day of Navratri. People will start benefiting from the first day of Navratri, and this time, Dhanteras will be more vibrant, he said. Mr Modi said he had promised “double dhamaka” of next-generation GST reforms before Diwali and Chhath from the ramparts of the Red Fort.

The Prime Minister said, without timely changes, we cannot give our country its rightful place in today’s global context. He said, the GST reforms incorporated “Panch Ratna” (five gems) – simpler tax system, better quality of life for citizens, boost for consumption and growth, encouraging investments and job creation through ease of doing business and strengthening cooperative federalism for developed India – to the country’s economy.

The rationalisation of GST, announced by the GST Council on Wednesday, has slashed taxes on multiple items — including food, medicines, essential items, farm goods, green energy, small cars and bikes. Crucial items, including life and medical insurance, life-saving drugs and food items, including dairy products and bread, have been made tax-free.