On India’s 79th Independence Day, Prime Minister Narendra Modi addressed the nation from the Red Fort, making a significant announcement regarding upcoming GST reforms. The Prime Minister referred to these reforms as a “Diwali gift,” promising substantial tax reductions and increased facilities for the common man. He highlighted that the reforms would particularly benefit Micro, Small, and Medium Enterprises (MSMEs) and small entrepreneurs, and would make everyday items more affordable, thereby boosting the economy.
“This Diwali, I am going to make it a double Diwali for you. This Diwali, you fellow countrymen are going to get a very big gift. In the last 8 years, we have done a big reform of GST, reduced the tax burden across the country, simplified the tax regime and after 8 years, the need of the hour is that we should review it once. We started the review by setting up a high-power committee and also held discussions with the states.
My dear countrymen,
We are coming with the next generation of GST reforms, this will be a gift for you this Diwali, taxes needed by the common man will be reduced substantially, a lot of facilities will be increased. Our MSMEs, our small entrepreneurs, will get a huge benefit. Everyday items will become very cheap and that will also give a new boost to the economy,” PM Modi said
Why Is It Being Called a “Diwali Gift”?
Timing & Symbolism
The reforms are scheduled to be implemented by Diwali (October 2025), giving the public a timely tax relief during the festival season
Substantive Tax Relief
Authorities are considering a major restructuring: most items in the 12% GST slab could be moved to a lower 5% slab—or, for some goods, to a higher but more rationalized 18% bracket. Reports suggest up to 99% of items currently taxed at 12% may shift to 5%
Boost to Households & GDP
This restructuring could lower prices of everyday items and stimulate consumption.
Also Read: Trump’s Tariff Threat: Is India’s Russian Oil Deal a Target?
What is APAAR ID? CBSE Makes It Mandatory for Class 10 & 12 Board Exam Registrations
US Imposes New Tariffs on India, Trump Warns of More ‘Secondary Sanctions’
Trump’s Tariff Threat: Is India’s Russian Oil Deal a Target?