New Delhi: Prime Minister Narendra Modi on Wednesday hailed the sweeping Goods and Services Tax (GST) reforms approved by the GST Council, calling them “next-generation changes” that will ease living for citizens and boost economic growth.
In a post on X, the Prime Minister recalled that during his Independence Day address, he had pledged to bring wide-ranging GST reforms. “The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” he said.
Modi emphasised that the reforms would directly benefit multiple sections of society. “Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts and reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth,” he wrote.
The Prime Minister said the measures will not only improve the lives of ordinary citizens but also make it easier for small businesses and traders to operate. “The wide-ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,” he added.
The reforms, announced by Finance Minister Nirmala Sitharaman after the 56th GST Council meeting, mark one of the biggest overhauls since the rollout of the tax regime.
• The current four-slab system of 5%, 12%, 18% and 28% will be simplified into two main rates — 5% and 18%.
• A special 40% slab will remain for “sin and luxury goods” such as tobacco, cigarettes and high-end cars.
• Essential or “merit” goods will fall under the 5% bracket, while most goods and services will attract the 18% standard rate.
The Finance Minister said the reforms represent “second-generation GST changes” under PM Modi’s leadership, designed to ease compliance, reduce consumer burden, and strengthen the domestic economy.
