In a big win for Indian consumers and small businesses, the government has announced major reforms to the Goods and Services Tax (GST). These changes aim to make life easier and boost economic growth across the country.
Prime Minister Narendra Modi’s leadership has been praised for these landmark GST reforms. Union Home Minister Amit Shah called the move a “truly transformative decision,” emphasizing that reducing GST rates will bring relief to the poor, middle class, farmers, and small entrepreneurs. Shah added that simplifying the tax system and lowering the burden on citizens will improve daily life and help small traders and businesses thrive.
Union Defence Minister Rajnath Singh also appreciated the bold step, thanking PM Modi and Finance Minister Nirmala Sitharaman for introducing these reforms. Singh said that lowering taxes on key goods will strengthen ease of doing business, empower small industries, and support India’s goal to become self-reliant under the Aatmanirbhar Bharat initiative.
External Affairs Minister S. Jaishankar highlighted that these GST changes will have a lasting impact on how India manages its economy. He tweeted that the reforms will help improve citizens’ quality of life and make it easier for businesses to operate, contributing to India’s big growth story.
BJP President J.P. Nadda and several other leaders also praised the reforms. Nadda called it a forward-looking move that will help families manage costs and boost small businesses. Union Commerce Minister Piyush Goyal described it as a “Diwali gift” to the nation, noting that the reforms will support farmers, MSMEs, women, youth, and other sectors.
The GST Council, led by Finance Minister Nirmala Sitharaman, approved sweeping changes to simplify the tax system. They cut the number of GST slabs from four to just two — 5% and 18% — effective from September 22. The 12% and 28% tax slabs have been removed to reduce costs for consumers and encourage business activity.
Prime Minister Modi also shared his approval on X (formerly Twitter), stating that these reforms will benefit everyone from farmers to small traders. He emphasized that the changes will bring ease of living and strengthen India’s economy.
The reforms also include eliminating the inverted duty structure and adjusting GST on many essential items like healthcare products, food, and farming supplies. The goal is to make everyday essentials more affordable while supporting the growth of small and medium businesses.
These changes are part of India’s broader plan to make the economy more simple, transparent, and self-reliant. By reducing taxes on popular items and easing regulations, the government aims to boost manufacturing, create jobs, and ensure inclusive growth across the country.
Overall, these next-generation GST reforms are seen as a major step forward for India. They promise a smoother tax system, lower prices for consumers, and a stronger environment for small businesses to grow and thrive.
