Diwali Delight: GST Reforms to Lighten India's Tax Load

In a landmark announcement, Indian Prime Minister Narendra Modi pledged to revise the goods and services tax (GST) system, aiming to reduce taxes by Diwali, the revered Hindu festival of lights celebrated in October.

Speaking on the country's anniversary of independence, Modi emphasized the government's commitment to next-generation GST reforms designed to ease the tax duty nationwide. The initiative is part of Modi's broader economic strategy to fortify India's financial landscape.

A ministerial group is currently assessing options to consolidate tax slabs and cut rates for certain goods, such as packaged foods and hotel accommodation, with a view to enhancing consumption and boosting revenue. These proposed changes are expected to modulate GST brackets introduced in 2017, potentially impacting the nation's GDP.

(With inputs from agencies.)