PM Modi highlights GST’s impact since 2017 and announces structural reforms, rate rationalisation, and ease-of-living measures.
On India’s 79th Independence Day, Prime Minister Shri Narendra Modi highlighted the transformative impact of the Goods and Services Tax (GST), implemented in 2017, calling it a landmark reform that has benefited the nation.
The Prime Minister emphasised the government’s vision for next-generation GST reforms, aimed at building an ‘Atmanirbhar Bharat’. The reforms are designed to benefit the common man, women, students, the middle class, farmers, and MSMEs, while strengthening key economic sectors and stimulating growth.
The reforms will focus on three pillars:
- Structural reforms – correcting inverted duty structures, resolving classification-related disputes, and ensuring rate stability to support domestic value addition and improve ease of doing business.
- Rate rationalisation – reducing taxes on essential and aspirational goods, simplifying the system towards two slabs: standard and merit, and leveraging the fiscal space created after ending the compensation cess to align rates for long-term sustainability.
- Ease of living – enabling technology-driven registration for startups and small businesses, pre-filled returns to reduce errors and manual intervention, and faster automated refunds for exporters and sectors with inverted duties.
The government has formally submitted its GST reform proposals to the Group of Ministers (GoM) under the GST Council for detailed examination and deliberation. The upcoming GST Council meetings will discuss these recommendations with a goal of early implementation, ensuring that benefits are realised within the current financial year.
The Centre stressed that these reforms are being pursued in the spirit of cooperative federalism, working closely with states to build broad-based consensus. The government aims to evolve GST into a simple, stable, and transparent tax system, strengthening the formal economy, boosting ease of doing business, and driving inclusive growth nationwide.
Source: PR
