PM Modi Unveils 'Double Diwali' GST Relief for Consumers and Businesses

In an Independence Day address from the historic Red Fort, Prime Minister Narendra Modi declared that the government is poised to introduce significant reforms in the Goods and Services Tax (GST). These changes, dubbed as a 'double Diwali gift,' are poised to offer considerable relief to consumers and small businesses by Diwali.

Highlighting the impact of these changes, PM Modi stated that tax rates on essential goods would decrease under a streamlined framework. He emphasized, 'Over the past eight years, we implemented sweeping GST reforms to lessen the tax burden nationwide. It's time for a review, and a high-powered committee, in consultation with the states, is leading the charge for next-generation GST reforms.'

Amid efforts to spur consumption and streamline business operations, particularly for micro, small, and medium enterprises (MSMEs), these GST revisions aim to simplify compliance and bring transparency. The GST, implemented in 2017, replaced an array of indirect taxes, enhancing economic integration. In 2024-25, GST collections soared by 9.4%, hitting a record Rs 22.08 lakh crore, indicating growing formalisation and compliance.

(With inputs from agencies.)