On August 15, 2025, during his Independence Day speech, Prime Minister Narendra Modi announced major Goods and Services Tax (GST) reforms to be rolled out by Diwali. Industry leaders cheered the plan, saying it will cut taxes for everyday people and help small businesses (MSMEs) and big producers. The Finance Ministry proposed a simpler two-tier GST system with “standard” and “merit” slabs, plus special rates for some goods. An X post from @ANI said, “PM Modi’s GST reforms by Diwali to ease taxes for common man, boost MSMEs!”
GST changes by Diwali? That’s great news for shoppers!
Helping Common People and Businesses
Krishan Arora from Grant Thornton Bharat said the reforms will likely lower GST rates on daily-use items from 12% to 5%, making things cheaper and boosting demand, especially for MSMEs. Sudhir Kapadia from EY called the reforms “much-needed,” with Modi’s clear timeline showing serious intent. The Group of Ministers (GoM) set up by the GST Council is reviewing the plan to make taxes fairer for everyone—middle class, women, students, and farmers. X users like @CNBCTV18Live posted, “GST reforms to simplify rates, help small businesses!”
Lower taxes on daily items? That’s a win for everyone!
A Simpler, Fairer System
Abhishek Jain from KPMG India praised the move to a two-rate GST system (plus a special rate for certain goods) and better tax refunds for businesses. He said it makes GST “more efficient and less litigious,” balancing simplicity with smart money management. The reforms aim to fix issues like complex tax slabs and delays in refunds, which hurt small businesses. The government wants to make GST easier for all, helping both buyers and sellers.
A simpler GST? Businesses are gonna love this!