Next-Gen GST Reforms Unveiled: Boosting India's Economic Growth

Prime Minister Narendra Modi announced a new phase of GST reforms focused on structural changes, rate rationalization, and ease of living. These reforms aim to rejuvenate India's economy, enhance consumer affordability, and streamline business processes. The measures are expected to roll out by Diwali, with widespread industry support.

In a landmark announcement on Independence Day, Prime Minister Narendra Modi declared the government's intention to embark on the next phase of Goods and Services Tax (GST) reforms. These reforms, centered around structural changes, rate rationalization, and ease of living, are part of the vision for an Aatmanirbhar Bharat.

According to the Ministry of Finance, a proposal outlining these GST reforms has been submitted to the Group of Ministers (GoM) by the GST Council. Aiming for early implementation within the current financial year, the initiative is heralded as a step toward engagement with stakeholders through constructive and inclusive dialogue, embodying cooperative federalism.

In the speech, Modi highlighted the transformative impact of GST since 2017, and the planned roll-out of these reforms by Diwali aims to reduce tax rates on daily-use items, address classification issues, and provide businesses with long-term rate clarity. Industry bodies have lauded the move, expected to enhance India's position as a global manufacturing hub.

(With inputs from agencies.)