New Delhi, Aug. 17 — Prime Minister Narendra Modi on Sunday announced that the government is preparing to roll out next-generation reforms in the Goods and Services Tax (GST) system ahead of Diwali, a move he said would deliver “double benefits” for citizens.
Speaking at the inauguration of two National Highway projects worth nearly ₹11,000 crore in the capital, Modi said the upcoming reforms are designed to make life easier for ordinary people while improving the ease of doing business.
“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,” Modi said.
According to officials, the Centre has proposed overhauling the tax structure by scrapping the existing 12 percent and 28 percent slabs, leaving only the 5 percent and 18 percent categories. Nearly 99 percent of items currently taxed at 12 percent are proposed to move to the 5 percent bracket, while about 90 percent of goods in the 28 percent slab may shift to the 18 percent category.
Government sources said the proposal will be taken up by a Group of Ministers before being placed before the GST Council, which is expected to meet in September or October.
Modi said the complete framework has already been shared with all states and urged them to extend their cooperation. “I hope the process is completed swiftly so that this Diwali can be made even more special,” he noted.
He added that the reform would simplify GST further, cut down rates, and ensure benefits reach every household, particularly the poor and middle class. “Our entrepreneurs, traders and businesspersons of all scales will also gain from these changes,” Modi said.
The Prime Minister’s remarks follow his Independence Day address on Friday, where he promised a major announcement on GST. “This Diwali, I am going to make it a double Diwali for you. People are going to get a very big gift. In the last eight years, we have reduced the tax burden and simplified the regime. Now the need of the hour is to review it again,” he said in his Red Fort speech.
Modi said a high-powered committee has already begun consultations with states as part of the review. “We are coming with the next generation of GST reforms. Everyday items will become very cheap and that will also give a new boost to the economy. Our MSMEs and small entrepreneurs will get a huge benefit,” he added.
