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PM Modi announced sweeping GST reforms from Red Fort, including simpler returns, lower rates on essentials, and tax simplification. Aimed at easing business, curbing inflation, and boosting economy, these changes promise relief for common citizens and traders alike by Diwali 2025.
PM Modi Announces GST Cuts on Essentials, Simplified Tax System
New Delhi: On the occasion of Independence Day on 15 August 2025, Prime Minister Narendra Modi announced a big Diwali gift to the countrymen from the ramparts of the Red Fort. He announced that major reforms will be made in the GST (Goods and Services Tax) system by the upcoming Diwali, which will benefit everyone from the general public to small and big businessmen.
Changes in GST: What will be new?
1. Next Generation GST Form Launch
Around Diwali, the new GST return system will be implemented, which will make it easier for businessmen to file returns and get refunds. PM Modi said that till now more than 40,000 unnecessary compliances have been eliminated, which has made it easier to do business.
2. Tax simplification
More than 280 complex sections related to income tax have been removed. Now a task force will be formed for "Next Generation Tax Reform," which will ensure more facilities for small traders.
3. Reduction in GST rates
GST rates on everyday items (such as food items and household goods) will be reduced, which will reduce their prices. Especially, there is a consideration to reduce the rates on items in the 12% and 18% slabs.
How will the common man and businessmen benefit?
The general public will get relief from inflation, because things of daily use will become cheaper. Small businessmen will be free from the complex process of filing GST returns, and they will get refunds faster. The economy will get a boost, because by simplifying the tax system, business will increase and employment opportunities will be created.
"Sugaam GST, Sashakt Bharat"
This move by Prime Minister Modi furthers the vision of "Ease of Doing Business" and "Sabka Saath, Sabka Vikas." These changes to be made by Diwali will not only have a positive impact on the pockets of the common man but will also give a boost to the Indian economy. This announcement can indeed prove to be "a historic step towards tax reforms."
