Key Points

"For us, reform means the expansion of good governance," said the Prime Minister, emphasising that continuous focus is being placed on reforms. He made the marks during the inauguration ceremony of two major National Highway projects worth a combined cost of nearly Rs.11,000 crore in the national capital.

He announced that in the coming days, several major reforms will be introduced to make both life and business easier.

"As part of this effort, a next-generation reform in GST is being planned. This Diwali, citizens will receive a double bonus through the GST reform," stated PM Modi.

Informing that the complete framework has been shared with all states, PM Modi expressed hope that all states will cooperate with this initiative of the Government of India.

He urged for the swift completion of the process so that this Diwali can be made even more special.

Adding that the government aims to simplify GST further and revise tax rates, the Prime Minister highlighted that the benefits of this reform will reach every household, especially the poor and middle class.

He added that entrepreneurs of all scales, as well as traders and businesspersons, will gain from these changes.

Sources said that the Central government has proposed to scrap the current slab of 12 per cent and 28 per cent of GST rates and keep only 5 per cent and 18 per cent GST rates.

Government sources said as part of the initiative, 99 per cent of 12 per cent slab are proposed to move in 5 per cent slab and 90 per cent of items in 28 per cent slab are proposed to move in the 18 per cent slab.

The initiative is in line with Prime Minister Narendra Modi's announcement during his Indepedendence Day Speech on Friday that people are going to get a very big gift on Diwali and the government has embarked on "big reform of GST".

The sources said that the proposal will be studied by the GoM and a meeting of the GST Council is likely to be held in September-October to consider the proposal.

PM Modi made a major announcement in the Independence Day address relating to GST.

"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," PM Modi said from the ramparts of the Red Fort.

"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," he added.

- ANI