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PM Modi said that during his Independence Day speech, he had mentioned the government’s plans to bring “Next-Generation” reforms in the GST
Prime Minister Narendra Modi (Image: PTI)
Shortly after the GST Council announced new reforms on Wednesday, Prime Minister Narendra Modi hailed the changes, saying they will improve the lives of the common man and strengthen the economy.
In a post on X, PM Modi said that during his Independence Day speech, he had outlined the government’s plans to introduce “Next-Generation” reforms in the Goods and Services Tax (GST).
“The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” he wrote.
During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST.The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and…
– Narendra Modi (@narendramodi) September 3, 2025
The GST Council, which includes representatives from both the Union and the States, has agreed to the government’s proposals on rate cuts and reforms. PM Modi said the changes would benefit various groups, including the common man, farmers, MSMEs (micro, small and medium enterprises), the middle class, women, and youth.
“Glad to state that @GST_Council , comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth,” the prime minister noted.
“The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,” he added.
Finance Minister Nirmala Sitharaman, speaking to the press after the 56th GST Council meeting, announced that the Council had approved the Centre’s proposal to simplify the indirect tax system. The overhaul will introduce a dual slab structure with rates of 5% and 18%, along with a special 40% slab for sin and luxury goods.
This new system replaces the current four major tax slabs — 5%, 12%, 18%, and 28% — with a simpler two-rate framework. Essential or “merit” goods will be taxed at 5%, while most goods and services will be subject to the standard 18% rate.
ALSO READ: What Gets Cheaper, What Gets Costlier After GST Council’s Big Tax Reset: Full List
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
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