GST Rates to See Major Cut by Diwali, Says PM Modi

New Delhi, Aug 15 — Prime Minister Narendra Modi announced on Friday that significant reforms to the Goods and Services Tax (GST) will be rolled out by Diwali, offering “substantial” tax relief to the public and boosting small and medium enterprises.

Speaking from the Red Fort on India’s 79th Independence Day, Modi said GST—introduced on July 1, 2017—has now completed eight years, making this the right time for next-generation reforms.

“We have reached an understanding with the states and will implement GST changes as a Diwali gift to citizens,” he said, adding that taxes on essential goods will be reduced, benefiting MSMEs and making everyday items more affordable, while strengthening the economy.

A Group of Ministers, comprising state finance ministers, is already reviewing rate rationalisation and the simplification of GST slabs.