Prime Minister Narendra Modi on Sunday reiterated that the next phase of Goods and Services Tax (GST) reforms will be rolled out before Diwali, promising what he called “double benefits” for citizens across the country.
Major tax slabs set for overhaul
According to sources, the Centre has proposed scrapping the existing 12 per cent and 28 per cent GST slabs. Almost 99 per cent of items in the 12 per cent bracket are expected to shift to 5 per cent, while nearly 90 per cent of goods in the 28 per cent slab are likely to move down to 18 per cent. The changes, if approved, are expected to make everyday items more affordable for households and ease the burden on small businesses.
Framework shared with states
Speaking at the inauguration of two National Highway projects worth nearly Rs 11,000 crore in New Delhi, the Prime Minister said the complete framework of reforms had been shared with all states. He expressed hope for swift cooperation, emphasising that the initiative would make life and business simpler. “We are coming with the next generation of GST reforms, this will be a gift for you this Diwali,” he said, urging quick completion of the process.
Impact on common man and MSMEs
PM Modi stressed that the reforms were designed to directly benefit the poor, middle class and small entrepreneurs. Everyday items would become cheaper, he said, while micro, small and medium enterprises (MSMEs) would receive a “huge boost” in easing their business operations. “Taxes needed by the common man will be reduced substantially, and a lot of facilities will be increased,” he said, underlining the government’s aim to deliver tangible relief.
Decision expected in coming weeks
The proposal will be studied by the Group of Ministers, with the GST Council expected to meet between September and October to consider its adoption. If cleared, the reforms would mark a major simplification of India’s indirect tax system, aligning with the government’s pitch for inclusive growth and economic revival.
