Next-Gen GST Reforms: Modi's Festive Season Game-Changer

Prime Minister Narendra Modi has announced the next-generation GST reforms aimed at simplifying the tax structure and boosting local manufacturing. The reforms propose reducing the current four GST tax slabs to two, benefiting both citizens and businesses, and are set to be implemented before Diwali.

Devdiscourse News Desk | New Delhi | Updated: 17-08-2025 18:22 IST | Created: 17-08-2025 18:22 IST

Next-Gen GST Reforms: Modi's Festive Season Game-Changer — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Country:
India

Prime Minister Narendra Modi has unveiled a new draft for next-generation GST reforms, intended to restructure the nation's tax regime and bolster local manufacturing, notably ahead of the Diwali festival.

The proposed changes, expected to simplify the Goods and Services Tax into two major slabs of 5% and 18%, mark a strategic shift from the current multi-slab system.

By also introducing a special 40% rate for demerit goods, these reforms aim to alleviate the economic impact of U.S. tariffs and strengthen India's self-reliance across sectors, from electronics to everyday goods.

(With inputs from agencies.)