Key Points

He was asked if the GST reforms had any direct links with Trump's tariffs on Indian goods.

"The preparation for GST reforms had started about one-and-a-half years ago...before the US elections. This initiative was taken in PM Modi's clear goal to reform, perform, and transform. This GST reform will start a transformation journey of the country," Vaishnaw said.

"This one-and-a-half-year-long GST reform exercise has now been finalised...In every step, PM Modi has guided us... External factors have no role to play in this next-generation reform," Vaishnaw said, in apparent reference to US tariffs on Indian goods.

Furthermore, he cited instances from the pre-GST era, when goods-laden trucks used to have long queues at state borders for necessary clearances. Now, the process is seamless, the Minister said.

"Earlier, there used to be a long queue of trucks at state borders. Now, e-way bills are generated in a matter of seconds."

GST was introduced in 2017.

The income tax relief provided for in the 2025-26 Budget, coupled with GST rate rationalisation, is set to further push India's economy to another level, Vaishnaw said.

"Before 2014, the taxation system was very complex and goods were taxed at multiple levels. GST has made it simple. This rationalisation and simplification in GST reforms will make people's lives easier," he said at the presser.

All daily-use goods saw GST reduced under the next-generation reforms, he said.

"The promise PM Modi had made from the ramparts of the Red Fort have been fulfilled," he said.

On September 22, the first day of Navratri, all changes in GST rates will come into effect.

"This GST reform will push India's economy further. From a pure economic point of view, our GDP is currently at Rs 3.30 lakh crore, of which Rs 2.02 lakh crore is our consumption. Even if our consumption rises by 10%, we will have Rs 20 lakh crore extra consumption, contributing to GDP," he gave a back-of-the-envelope calculation as to the extent to which this GST reform can boost the country's consumption.

Sweeping changes have been made to what the government termed the next-generation GST (Goods and Services Tax) rationalisation. It came just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day. This is aimed at reducing the tax burden on citizens while stimulating economic growth.

The GST Council approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation.

- ANI