GST reforms
PM Modi hails next-gen GST reforms as Council approves two-tier tax structure ahead of festive season
New Delhi: Prime Minister Narendra Modi on Wednesday welcomed the introduction of next-generation reforms in the Goods and Services Tax (GST), describing them as steps that would ease the lives of citizens and make business simpler, particularly for small traders and enterprises.
"During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy," Modi said.
During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST.
— Narendra Modi (@narendramodi) September 3, 2025
The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and…
Finance minister Nirmala Sitharaman announced sweeping rate cuts after the GST Council approved a new two-slab structure of 5% and 18%.
Hon’ble Prime Minister Shri @narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort.
— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025
Working on the same principle, the GST Council has approved significant reforms today.
These reforms have a multi-sectoral and… pic.twitter.com/NzvvVScKCF
The reforms, set to take effect from September 22, are expected to significantly lower household expenses.
"For common man and middle class items, there is a complete reduction from 18% and 12 to 5%. Items such as hair oil, toilet, soap bars, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware and other household articles are now at 5%," Sitharaman said.
"UHT milk, paneer, all the Indian breads will see nil rate," she added.
Common man items such as Hair Oil, Toilet Soap, Soap Bars, Shampoos, Toothbrushes, Toothpaste, Bicycles, Tableware, Kitchenware, and other household articles have all been brought under the 5% GST slab
— PIB India (@PIB_India) September 3, 2025
Similarly, the GST on items such as ultra-high temperature milk, chena, and… pic.twitter.com/RnKFIRrz70
The decisions were taken at the 56th GST Council meeting held on Wednesday, which reviewed rate revisions and category adjustments across a wide range of products under the indirect tax system.
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