PM Modi Announces Major GST Reforms on 79th Independence Day, Promises 'Double Diwali' Celebration

New Delhi: On the occasion of India’s 79th Independence Day, Prime Minister Narendra Modi, addressing the nation from the Red Fort, unveiled plans for significant reforms in the taxation system, with a focus on simplifying the Goods and Services Tax (GST). He announced the formation of a high-level task force to drive next-generation reforms in governance, taxation, and public service delivery.

High-Level Task Force to Spearhead Reforms

PM Modi emphasized that the newly formed task force will prioritize transformative changes, particularly in the tax system. “We have decided to establish a task force to implement next-generation reforms. Our aim is to bring benefits to the public through comprehensive improvements across all sectors,” he stated during his speech.

‘Double Diwali’ Gift for the Nation

In a festive promise, the Prime Minister hinted at a major economic announcement before Diwali, describing it as a “Double Diwali” for citizens. He revealed that the government plans to significantly reduce GST rates on essential household items. “This Diwali, I will present a big gift to the nation. We will slash GST rates on daily-use goods to ease the burden on the common man,” Modi declared.

GST Review: A Need of the Hour

Highlighting the necessity of revising GST rates, PM Modi called it a “demand of the times.” He assured the nation that the government is working on a new generation of GST reforms aimed at reducing the tax burden, simplifying the tax structure, and enhancing transparency. These changes are expected to make the system more citizen-friendly while maintaining economic stability.

GST’s Journey and Future Expectations

Introduced in 2017, GST was one of India’s most significant indirect tax reforms, unifying the country’s tax framework and promoting ease of doing business, especially for small and medium enterprises. Over the past eight years, GST has driven record revenue growth and improved transparency in tax collection.

Recent data reflects a surge in GST collections, alongside growing calls from businesses for further simplification. The proposed reforms are expected to address these demands while sustaining revenue growth, striking a balance between ease of compliance and fiscal stability.

A Message of Reform and Festivity

PM Modi’s announcement blends the promise of structural reforms with the joy of the festive season, signaling a transformative phase in India’s economic policies. As Diwali approaches, citizens and businesses alike eagerly await the “big gift” that could redefine the nation’s financial landscape