Nagrik Devo Bhava – every citizen is the face of the divine. Prime Minister Narendra Modi’s heartfelt mantra is the spirit behind the new Goods and Service Tax (GST) regime. This has changed the way a common person thinks about taxation in India. Under the Modi Government, India has completed its journey from a multitude of taxes to the “One Nation, One Tax” regime — a tax reform that has created a common national market.
By exempting over 300 essentials — staples like rice and pulses to household must-haves like soap and school supplies — from taxation, this bold zero-tax proposal slashes prices, shields families from hidden inflationary pressure and channelises their savings into nutrition, well-being and their children’s future.
This simplified GST regime has made people more confident about the tax structure. Conversations on GST are taking place today in streets, towns, and village squares in the country. Even small traders proudly say, “We pay GST. we contribute to the nation’s development.” GST is not just a tax system but a symbol of New India’s self-confidence.
During the Congress regime, food, clothing, medicines, education, and even children’s toffees bore the brunt of high taxes. The common citizen was caught in a “web of taxes”. But all this changed in 2017 when the vision of “One Nation, One Tax” was realised under Prime Minister Narendra Modi. The new regime replaced numerous central and state indirect taxes. This also heralded a new economic journey in which concerns of industry and consumers were accorded primacy, while trade also received a fillip.
In implementing the GST regime, Prime Minister Modi followed the principles of “Ram Rajya”. Lord Ram says that a king should collect taxes in the same way as the sun draws water from the earth: Where there is more water, the sun draws more; and where there is less, it draws less. That same water later returns to the earth evenly in the form of rain. This ideal arrangement shows that taxation should never be a tool of injustice or exploitation, but a means of welfare.
Unfortunately, during the rule of the Opposition parties, the tax system strayed from this ideal. According to Kautilya, a tax structure should be simple — a king should collect tax just as a bee gathers nectar from flowers without harming them, yet produces honey for the benefit of all. PM Modi has put these principles into practice in letter and spirit. A true government is one that makes taxes not a burden on the people, but a tool for their development and growth. This is the essence of “Ram Rajya”, and today the Modi government is working in the same direction.
Under the Congress governments, taxes were a constant headache on one hand, while on the other hand, everyday inflation disturbed the budget of every household. With several layers of taxes, estimating the real price of goods was akin to solving a puzzle. During the Congress era, the tax on everyday items like toothpaste, soap, and hair oil amounted to more than 25 per cent. Even the common man’s ride, the bicycle, was taxed at 17 per cent. A 16 per cent tax on sewing machines made women’s hard work even more taxing.
This was not an ordinary mistake, but the Congress’s way of running a government where the poor and middle class were kept under the burden of taxes. Having one’s own home is the biggest dream of a common man, but under the Congress rule this dream became even more difficult. Cement was taxed at 29 per cent. Buying a TV, fan, AC, or other household goods attracted a 31 per cent tax.
Even health services were not spared from the Congress’s “tax loot.” Diagnostic kits, necessary for conducting medical tests, were taxed at 16 per cent. Poor and middle-class people used to think multiple times before getting a simple blood test or scan done. That is why treatment in India was considered expensive.
Under the Congress rule, hotel bookings were taxed at 14 per cent besides a hefty luxury tax. That meant travel could burden the pockets of common people twice, when they travelled. Tourism and the hotel industry had reached a state of stagnation because of Congress’s policies. The Modi government has either abolished or greatly reduced these taxes.
The Congress’s tax system made lives of villages and farmers even more taxing. On agricultural essentials like tractors, irrigation equipment, pumping sets, and hand tools, taxes ranging from 12 per cent to 14 per cent were levied. The farming community was the worst hit under the Congress’s regressive tax regime. As a result, the cost of farming kept rising and farmers sank into debt. Moreover, a similar product was sold at different prices in different states, which hurt consumers.
GST 2.0 regime has brought in major relief to all sections of our society. On essential goods, GST has either been reduced to zero or placed in only the 5 per cent slab. The earlier regime had many tax slabs, but GST 2.0 has only two slabs, which have provided major relief to everyone, from ordinary citizens to traders and entrepreneurs. The journey from the Congress’s tax loot regime to the Modi government’s tax relief is not just the story of reform but also evidence of steps towards making India developed.
Next Gen GST 2.0 reforms have brought in five revolutionary changes —simplification of the tax system, improvement in the quality of life, a renewed boost to consumption and growth, fresh strength to investment and employment, and making of India developed through strong cooperation between the states and the Centre.
The reforms in the GST regime have once again proven that the BJP government’s mantra of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas” is not just a slogan but a commitment of the Modi Government to the people. These reforms come after the recent income tax relief package, which exempted earnings up to Rs 12 lakh for millions of salaried individuals and small businesses. This is, therefore, a synergistic double boost. It sends the message that the Modi government understands people’s needs and wants to help them fulfill their aspirations. This change speaks of a new, resurgent India.
The writer is a Lok Sabha MP from Garhwal and National Media Head and BJP’s chief spokesperson
