Key Points

Goyal shared a post on X on Wednesday, stating that the GST Council's decision is aimed at promoting ease of living and supporting farmers, MSMEs, the middle class, women, and youth.

"PM Narendra Modi ji's historic Diwali gift for all! Heartiest congratulations to PM Modi ji and FM Nirmala Sitharaman ji on the introduction of the Next Gen GST reforms, duly supported by the GST Council in line with the Union Government's proposals on GST rate cuts and reforms," he said.

"These broad-based GST rate rationalisation and process reforms are aimed at enhancing ease of living for citizens, supporting farmers, MSMEs, the middle-class, women, and youth, while fostering growth across key sectors of the economy," the X post added.

Goyal hailed the tax reforms for strengthening the ease of doing business.

"The GST reforms will benefit consumers, strengthen ease of doing business, and create new opportunities for small traders, enterprises, and industry, reinforcing the vision of Viksit Bharat and advancing India's journey towards sustainable and inclusive growth," he wrote.

Union Minister Nitin Gadkari said that PM Modi's announcement from the Red Fort on August 15 regarding the GST reforms took shape with the GST Council's decision.

"Hon'ble PM Narendra Modi Ji's Independence Day announcement on Next-Generation GST Reforms has today taken shape with the GST Council unanimously endorsing the Union Government's proposals. These reforms mark a transformative step--bringing relief to farmers, MSMEs, small traders, women, youth, and the middle class, while ensuring ease of doing business across India," Gadkari wrote on X.

He added, "This is more than just a policy change; it's a step towards empowering citizens and strengthening our economy. Heartfelt thanks to Hon' PM Modi Ji and FM Nirmala Sitharaman Ji for this historic and much-needed step."

On a similar note, Union Minister Dharmendra Pradhan also thanked PM Modi and FM Sitharaman.

Pradhan wrote, "An early Diwali bonanza for the nation as promised in the Independence Day address. Grateful to Hon'ble PM Narendra Modi ji and FM Nirmala Sitharaman ji for the next-gen GST reforms. The process reforms and rate rationalisation will reinvigorate key economic sectors and usher in a new era of economic growth and Ease of Living. From agriculture to enterprise, from households to businesses, the reforms are all-encompassing and bring relief and cheer for every section, particularly the middle class."

BJP leader Smriti Irani stressed that the Next-Gen GST Reform, steered by PM Narendra Modi, signals a calibrated shift toward fiscal equity and growth-oriented tax rationalisation.

"By lowering indirect tax burdens on core consumption, healthcare, agri-inputs, and education, the reform enhances disposable income, boosts productivity, and supports MSMEs and inclusive entrepreneurship," Irani said.

Earlier, the GST Council, after a threadbare discussion, approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation. The announcements were made by FM Nirmala Sitharaman.

On the essential items front, items of daily household use will now cost less. Products such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, which earlier attracted 18 per cent GST, will now fall under the 5 per cent bracket.

Sitharaman announced a complete removal of GST on individual health and life insurance.

Farmers and the agriculture sector stand to gain significantly from these reforms as tractor tyres and parts, earlier under 18 per cent GST, will now be taxed at just 5 per cent, while tractors themselves will also see their rate reduced from 12 per cent to 5 per cent.

- ANI