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A day after he hinted at a “Diwali gift”, Prime Minister Narendra Modi urged state governments to cooperate in implementing the proposed goods and services tax (GST) reforms, according to a PTI report. “Next-generation GST reforms are set to bring double benefits for citizens across the country. For us, reform means expansion of good governance,” the prime minister said on August 17.
‘GST reforms set to bring double benefits…’: PM Narendra Modi urges states to cooperate
A day after he hinted at a “Diwali gift”, Prime Minister Narendra Modi urged state governments to cooperate in implementing the proposed goods and services tax (GST) reforms, according to a PTI report.
Modi added that the Centre has circulated the draft GST reforms among states and sought their cooperation to implement the proposal which would benefit poor, middle-class, and small and big businesses, before Diwali.
This comes after Modi in his Independence Day speech at the Red Fort, hailed his government's GST reforms stating, “We are bringing next-generation GST reforms. This will reduce the tax burden across the country.”
What did PM Modi say on GST reforms?
“For us, reform signifies the advancement of good governance, which is why we place a strong emphasis on continuous improvement. In the near future, we are set to implement reforms aimed at making life and business operations smoother and more convenient. As part of this vision, next-generation reforms will be introduced under the GST framework. This Diwali, these GST reforms will bring a double bonus to the people, enhancing their celebrations,” the prime minister said.He added, “I hope that all states will cooperate in the initiatives of the central government at the earliest so that the Diwali festival becomes more fabulous. The objective of this reform is to make GST simpler and revise rates,” he added on August 17.
What are the current GST rates? What is proposed?
Notably, on India's 79th Independence Day this August 15th, the Union Finance Ministry announced that the Centre plans to simplify its tax regime and rationalise existing GST rates. The proposed reforms it said are aimed at simplifying tax structure into two slabs: ‘standard' and ‘merit', with the special rates being imposed “only on a select few items”, according to a social media post by the Ministry on Friday.As of August 17, 2025, the effective GST rate slabs in India are 5 per cent, 12 per cent, 18 per cent, and 28 per cent, on most goods and services, except for commodities such as gold and silver. Other items such as alcohol come under the Excise Department, while the government also imposes additional tax rates on cigarettes and luxury cars.
GST Council to discuss reforms, examination on
The Finance Ministry further added that the Centre has forwarded its recommendations regarding the GST rate rationalisation and reforms to the Group of Ministers (GoM) for further examination.After this is completed, the GST Council will discuss the recommendations from the GoM in its next meeting and try to implement them “early”, to help citizens benefit from the changed tax slabs in the current financial year, it added
“The Government reaffirms its commitment to evolving the GST into a simple, stable, and transparent tax system,” the Ministry added.
Source: LiveMint
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