PM Modi Announces Next-Generation GST Reforms to Roll Out by Diwali

In a landmark announcement during his Independence Day address from the historic Red Fort on Friday, Prime Minister Narendra Modi declared that the government will introduce “next-generation GST reforms” by Diwali this year. The initiative, aimed at easing the tax burden on households and small businesses, is set to rationalise tax slabs and reduce Goods and Services Tax (GST) rates on essential and daily-use items.

Describing the move as a “massive gift” to citizens, the Prime Minister reaffirmed his government’s commitment to making life easier for the common man. “This Diwali, we will bring GST reforms that will lower prices and boost compliance,” he stated, marking his 12th consecutive Independence Day speech.

The reforms are positioned as part of the government’s broader economic transformation agenda. They are expected to deliver significant relief to micro, small, and medium enterprises (MSMEs) through simplified processes and reduced operational costs. By fostering a more transparent and business-friendly tax environment, the changes are designed to stimulate both economic growth and consumer spending.

Introduced in 2017, the GST system has long been the subject of calls from industry bodies and state governments for simplification and rate rationalisation. The Prime Minister’s announcement is anticipated to pave the way for substantive discussions within the GST Council in the run-up to the festival season.

This pledge of a Diwali rollout complements other economic measures outlined in Modi’s address, which also highlighted accelerated infrastructure development, a push for domestic manufacturing, and the nation’s vision to achieve developed-economy status by 2047.