PM Modi Recalls Pre-GST Chaos As New Reforms Take Effect

Prime Minister Narendra Modi has evoked a striking example from before 2014 to illustrate the confusion and cost of India’s old tax regime.

He recalls a French company finding it cheaper to send goods from Bengaluru to Hyderabad via Europe than to move them directly between the two cities.

Addressing the nation ahead of the GST 2.0 rollout, PM Modi explains that multiple tolls, state levies and checkpoints once made domestic trade unnecessarily expensive and slow.

He says the extra burden ultimately fell on ordinary households through higher consumer prices.

Making Simplification a Priority

The Prime Minister stresses that simplifying the tax regime became a core focus of his government after 2014.

He says discussions were held with all stakeholders, doubts from states were resolved, and a consensus was built to implement India’s largest tax reform in the national interest.

According to PM Modi, the Goods and Services Tax freed the country from dozens of overlapping taxes and created a uniform system across states.

He describes GST as the realisation of the dream of ‘One Nation, One Tax’ that transformed the business environment and boosted logistics efficiency.

Highlighting the contrast with the pre-GST era, the Prime Minister notes that goods now move freely across states, industries save on logistics costs, and citizens benefit from lower prices.

He calls the new regime a powerful example of ‘One Nation, One Market’ and a foundation for India’s growth as GST 2.0 takes effect.

PM Modi frames the next phase of GST reforms as a continuation of this journey, saying the new measures will deepen the benefits already felt by businesses and households across the country.

Also Read: PM Modi: New GST Reforms To Usher In A New Chapter From September 22