PM Modi's 'Double Diwali Gift': Major GST Reforms Announced

Prime Minister Narendra Modi announced major GST reforms to provide relief to consumers and small businesses. The reforms, a "double Diwali gift," aim to reduce tax rates, benefiting essential goods and MSMEs. The move follows eight years since GST's implementation, aiming to boost consumption and ease of business.

Prime Minister Narendra Modi, in a landmark Independence Day address from the Red Fort, unveiled plans for significant reforms in the Goods and Services Tax (GST), promising a 'double Diwali gift' for consumers and small businesses. This reform package aims to ease tax burdens, particularly benefiting essential goods and micro, small, and medium enterprises (MSMEs).

Highlighting the success of past GST reforms, PM Modi noted the upcoming changes will enhance the current system. A high-powered committee, after consulting with various states, is set to introduce next-generation reforms that simplify the tax structure, making compliance easier and reducing tax rates on necessities.

Since its introduction in 2017, GST has streamlined indirect taxation in India, fostering economic integration and transparency. Celebrating GST's eight-year milestone, the Prime Minister emphasized continued efforts to improve the business environment and boost economic growth. Recent achievements, such as record GST collections, underscore these ongoing improvements.

(With inputs from agencies.)