Prime Minister Narendra Modi on Sunday announced that the savings festival, or ‘Bachat Utsav,’ will start tomorrow, timed with the rollout of the Next Generation GST reforms, promising benefits for families across India.

“Tyohaaro ke iss mausam mein sabka muh meetha hoga. Desh ke har pariwar ki khushiya badhegi (This festive season will bring sweets to everyone's mouth. Happiness will increase in every family across the country),” Modi said as he congratulated millions of families for the reforms and the upcoming 'Bachat Utsav'.

"'GST Bachat Utsav' will commence. Your savings will increase and you will be able to buy your favourite things...'GST Bachat Utsav' will benefit all sections of the society,” he added.

The prime minister highlighted that decisions such as raising the income tax exemption limit and implementing GST reforms are expected to save citizens Rs 2.5 lakh crore. Daily essentials, medicines, and insurance will become cheaper from Monday, while income tax exemption on earnings up to Rs 12 lakh has already been introduced which will benefit the “neo-middle class” with new aspirations.

“...a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today…This year, the government presented a gift by making income up to Rs 12 lakh tax-free and naturally, when income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation...Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams.”

Modi also reflected on the historic GST reform, saying that the dream of 'One Nation, One Tax' was realised.”

Monday, which marks Navratri, will see India take an important step towards Aatmanirbhar Bharat as the new GST reforms come into effect, said the prime minister as he asked citizens to increase use of locally-made products rather than foreign ones, pushing for a self-reliant campaign when trade ties with United States have soured.

Congress general secretary Jairam Ramesh criticised the announcement on the new GST and said the changes were inadequate and would do little to address long-standing economic challenges.

The Congress leader called the GST as a “growth-suppressing tax,” pointing to multiple tax brackets, high rates on essential goods, widespread evasion and misclassification, expensive compliance requirements, and an inverted duty structure.

"Whether this round of GST changes—delayed by 8 years—will actually boost the private investment that is essential for higher GDP growth remains to be seen," the Congress leader wrote.

Bengal chief minister Mamata Banerjee on Sunday claimed that the Centre was taking undue credit for lowering GST rates, though the move was initiated by the state.

Without naming the Prime Minister, Bannerjee said, “We are losing Rs 20,000 crore as revenue, but we are happy about the lowering of GST. But why are you (Modi) claiming credit for it? We had sought a lowered GST. It was our suggestion at the GST Council meeting with the Union Finance Minister (Nirmala Sitharaman."