Prime Minister Narendra Modi on Friday used his Independence Day address from the ramparts of the Red Fort to announce that the government will unveil “next-generation GST reforms” by Diwali this year,
aimed at easing the tax burden on households and small businesses.
The Prime Minister said the reforms will rationalise tax slabs and reduce Goods and Services Tax (GST) rates on essential and daily-use items, a move he described as a “massive gift” to citizens. “We are committed to making life easier for the common man. This Diwali, we will bring GST reforms that will lower prices and boost compliance,” Modi said in his 12th consecutive Independence Day speech.
Calling the overhaul part of the government’s broader economic reforms agenda, Modi said the upcoming changes will also benefit micro, small and medium enterprises (MSMEs) by simplifying processes and reducing costs. The reforms, he added, are aimed at creating a more transparent and business-friendly tax regime that supports both growth and consumption.
The Goods and Services Tax, introduced in 2017, has faced repeated calls for simplification and rate rationalisation from industry and state governments alike. The Prime Minister’s announcement is expected to set the stage for deliberations in the GST Council ahead of the festival season.
The promise of a Diwali rollout adds to the economic measures flagged in Modi’s speech, which also touched upon infrastructure expansion, manufacturing push, and commitments to make India a developed nation by 2047.
