Modi vows two-slab GST rollout by Diwali to ease living costs

Prime Minister Narendra Modi announced on Independence Day that the next generation of Goods and Services Tax reforms will be rolled out by Diwali, promising substantial tax relief for households and a simpler, more business-friendly regime. Speaking from the Red Fort, he described the forthcoming changes as a major step in easing living costs, reducing the tax burden on daily-use items, and benefiting micro, small, and medium enterprises, with the overall goal of strengthening the economy. He said the reforms would be implemented in the current financial year, following discussions with states and a review by a government Group of Ministers.

The government’s plan centers on a broad overhaul of the GST architecture that has governed India’s indirect tax system since its 2017 launch. The current framework features multiple slab rates and a complex classification regime that industry bodies and consumer groups have long argued imposes compliance costs and distorts pricing. In his address, Modi linked the upcoming changes to a wider push for easier living for citizens and a more transparent tax regime that promotes both growth and consumption. The Diwali rollout is expected to set...