New Delhi, August 17, 2025: Prime Minister Narendra Modi on Sunday announced that next-generation Goods and Services Tax (GST) reforms, expected before this Diwali, will bring “double benefits” for citizens across India.
Speaking at the inauguration of two major National Highway projects worth nearly ₹11,000 crore in the national capital, PM Modi emphasised that reform is synonymous with the expansion of good governance. He said the government is focusing on reforms to make both life and business easier.
“As part of this effort, a next-generation reform in GST is being planned. This Diwali, citizens will receive a double bonus through the GST reform,” the Prime Minister stated.
PM Modi noted that the complete reform framework has been shared with all states and expressed hope for their cooperation. He urged swift implementation so that the benefits could reach households in time for the festival. The reforms are expected to simplify GST, revise tax rates, and ensure that benefits extend to the poor, middle class, entrepreneurs, traders, and businesspersons of all scales.
Government sources indicated that the proposal includes scrapping the current 12% and 28% GST slabs, retaining only 5% and 18% rates. Around 99% of items in the 12% slab would move to 5%, and 90% of items in the 28% slab would shift to 18%.
The move aligns with PM Modi’s Independence Day announcement promising citizens a significant “Diwali gift” through GST reforms. The proposal will be reviewed by the Group of Ministers (GoM), with a GST Council meeting likely in September-October to finalise the changes.
“This Diwali, I am going to make it a double Diwali for you. Taxes needed by the common man will be reduced substantially, everyday items will become cheaper, and our MSMEs and small entrepreneurs will gain huge benefits,” PM Modi said, highlighting that the reforms will also give a fresh boost to the economy.
Next-Gen GST Reforms to Deliver ‘Double Benefits’ to Citizens This Diwali, Says PM Modi
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