New GST Reform: Uttar Pradesh To Get Biggest Relief From Tax Cuts, Says CM Yogi

Updated: Thursday, September 25, 2025, 11:52 [IST]

The introduction of the 'Next Gen GST Reform' on Sharadiya Navratri has invigorated Uttar Pradesh's markets. Chief Minister Yogi Adityanath, speaking at a press conference in Hazratganj, highlighted that these reforms provide "direct relief to the public while strengthening the market and creating new avenues of employment." As India's largest consumer state, Uttar Pradesh is poised to benefit significantly from these tax reductions.

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Uttar Pradesh's markets have been revitalized by the 'Next Gen GST Reform' introduced on Sharadiya Navratri, with Chief Minister Yogi Adityanath highlighting the direct relief to the public through tax reductions on educational items, essential goods, and life-saving medicines, which has boosted consumption and employment while significantly increasing GST collections in the state since its inception.

Impact on Education and Healthcare

GST has been eliminated on educational items like notebooks and pencils. Essential household goods now mostly fall under the 0% or 5% tax bracket. Additionally, 33 life-saving medicines are completely exempt from GST. "The move has boosted market consumption, encouraging higher production and new jobs for youth," noted Adityanath. These changes offer timely relief during the festive season.

Adityanath emphasized the fiscal impact by noting that nationwide GST collections have surged from ₹7 lakh crore to ₹22 lakh crore since its inception. In Uttar Pradesh alone, collections have more than doubled—from ₹49,000 crore to over ₹1.15 lakh crore. "This demonstrates both stronger compliance and stronger consumption," he stated.

Market Reactions and Public Sentiment

Before addressing the media, Adityanath visited Hazratganj market to engage with traders and shoppers directly. He distributed pamphlets and banners explaining the reforms. Many traders and consumers expressed gratitude towards Prime Minister Narendra Modi and the Union Finance Minister for this tax relief.

The Chief Minister described the reform as "a decisive step against inflation." He asserted that reduced GST rates would not only ease household budgets but also expand trade opportunities. The changes are expected to stimulate market activity by encouraging higher consumption.

The reforms have injected fresh energy into Uttar Pradesh's economy by reducing taxes on essential goods and services. This initiative aims to boost market consumption, which in turn is likely to lead to increased production and job creation for young people across the state.