Prime Minister Narendra Modi on Thursday described the latest Goods and Services Tax(GST) reforms as a “next generation step” towards making India self-reliant, calling it a festival gift for citizens ahead of Diwali and Chhath. Speaking a day after the 56th GST Council meeting, Modi said the overhaul delivers on his Independence Day promise of a “double blast of happiness” for the people.
“From the Red Fort on August 15, I said that it is very important to do the next generation reform to make India self-reliant. Yesterday, the Government of India, in collaboration with the states, took a very big decision… Now GST has become even simpler. There are mainly only two rates of GST left — 5% and 18%,” Modi said.
The new structure, which replaces the earlier four slabs of 5%, 12%, 18% and 28%, will come into effect from September 22, coinciding with the first day of Navratri. The move is aimed at streamlining India’s indirect tax system and reducing compliance complexities for businesses.
Finance Minister Nirmala Sitharaman, who chaired the Council meeting, called it a “historic moment” in India’s economic reform journey, stressing that simplification would benefit both industry and consumers alike.
