May PM's Diwali gift bring double happiness!

While various indirect taxes were being collected in India, the GST tax has been in force since July 1, 2017 to bring a single system across the country. Currently, GST is levied at four rates of 5%, 12%, 18% and 28% on various services and goods. When GST was implemented, a revenue of Rs. 92,283 crore was generated. It has increased to Rs. 1.96 lakh crore in July 2025.
The GST tax system is set to undergo major changes soon. The public and business community have been demanding for a long time that the GST tax regime be simplified and taxes on everyday items be reduced.
It is in this context that Prime Minister Narendra Modi himself has confirmed in his Independence Day speech that a major GST tax reform is being introduced. He said that a big gift awaits the people of India during the festival of Diwali. The gift he mentioned is the GST tax reforms.
In India, if we want to increase consumption among the people, the prices of various goods need to come down. Therefore, the Union Finance Ministry has recommended a widespread reduction in the GST tax levied on goods that the common man can use on a daily basis. Important discussions will be held and a decision will be taken on these tax reforms in the upcoming GST Council meeting and the Group of Ministers.
Currently, GST is levied in 4 rates in India. Businessmen say that this is confusing. They are asking for it to be simplified. Therefore, it has been recommended that these 4 tax rates be reduced to 2 bands of 5 and 18 percent.
If the GST rate is reduced, the prices of those items will also come down. If the prices are reduced, more people will come forward to buy them. There is no doubt that the reforms brought in the GST tax system will reduce the tax burden on the customer, which will make it easier for companies to continue doing business.
In this situation, experts say that to what extent will the new tax really help reduce the prices of essential goods used by people? Will the prices of household appliances like ACs, refrigerators, and cars, which are currently taxed at 28 percent, increase enormously? All this will be known only when it is implemented.
However, the upcoming changes in GST have created hope among the people that the prices of many goods will come down. While Prime Minister Modi's mention of RSS in his Independence Day speech has drawn criticism from the opposition parties, the announcement of GST tax cuts has also been well-received by the people.
May Prime Minister Modi's Diwali gift bring more happiness than expected!