PM Modi Announces GST Reforms
In his address to the nation on the 79th Independence Day, PM Modi announced that GST reforms will lower the tax burden substantially and benefit small industries. He also said that these reforms will be implemented by Diwali.
Soon after the announcement, the finance ministry shared its proposal with the GoM. According to a post on X, the reforms rest on three pillars:
Currently, GST has a 4-tier structure with rates of 5, 12, 18, and 28 per cent. However, the government has now proposed a reduction in slabs. The Centre has proposed moving towards a simple tax with two slabs - standard and merit.
Special rates on select few items
The proposal includes a reduction of taxes on common man items and aspirational goods.
"This would enhance affordability, boost consumption, and make essential and aspirational goods more accessible to a wider population," the ministry said.
https://twitter.com/FinMinIndia/status/1956219532621586757?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1956219532621586757%7Ctwgr%5E1bb990f92609d95ff86cdb561dae2021db3840d0%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.indiatvnews.com%2Fbusiness%2Fnews%2Fgst-reforms-finance-ministry-proposes-reduction-of-slabs-reduction-of-taxes-after-pm-modi-s-independence-day-speech-2025-08-15-1003621
According to the ministry, the decision has been taken with the aim of building a constructive, inclusive, and consensus-based dialogue among all stakeholders.
The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, is expected to meet in September to discuss the GoM proposal on rate rationalisation.
Earlier, PM Modi said that the time has come to undertake reforms in GST as the indirect tax regime has completed 8 years.
GST, which subsumed a host of taxes and local levies, was rolled out on July 1, 2017.
About The Author
Comment List