India

Leaders Praise PM Modi For Next-Generation GST Reforms Simplifying India’s Tax System

Senior Union ministers and chief ministers from BJP-ruled states have lauded Prime Minister Narendra Modi’s leadership for steering the country towards a simplified and more inclusive Goods and Services Tax (GST) regime.

Union Home Minister Amit Shah called the decision to reduce GST rates and streamline processes a ‘truly transformative’ step that will improve ease of living for citizens while boosting opportunities for small traders and entrepreneurs.

Defence Minister Rajnath Singh described the measures as a ‘bold’ reform under PM Modi.

Finance Minister Nirmala Sitharaman stated that the tax cuts across key sectors would empower small businesses and enhance India’s self-reliance under the Aatmanirbhar Bharat initiative.

External Affairs Minister S Jaishankar, BJP President JP Nadda and Commerce and Industry Minister Piyush Goyal also took to social media to praise the reforms. They highlighted benefits for farmers, the middle class, micro and small enterprises, and women entrepreneurs.

Agriculture Minister Shivraj Singh Chouhan called the move a ‘Diwali gift’ that would simplify the lives of over a billion citizens and accelerate the construction of a ‘Developed India’.

Chief Ministers Yogi Adityanath, Pushkar Singh Dhami and Himanta Biswa Sarma echoed these sentiments, noting the positive impact on manufacturing, tourism, local entrepreneurship and job creation.

Two-Tier Tax Structure from September 22

In a major shift, the GST Council, chaired by Finance Minister Sitharama, approved reducing the existing four tax slabs to just two: 5 per cent and 18 per cent, eliminating the 12 per cent and 28 per cent rates.

The changes will take effect from September 22 for most goods and services, except for products such as pan masala, gutkha, cigarettes, and unmanufactured tobacco, for which specific rules will apply.

Sitharaman said the reform, reached with full consensus, was not merely about rationalising rates but also about structural changes to correct inverted duty structures and ensure benefits reach the common citizen quickly.

The Finance Minister added that reductions in tax rates for agriculture, healthcare and everyday essentials would make living more affordable, empower small businesses and support India’s journey towards sustainable growth.

PM Modi, in a post on X, recalled his Independence Day pledge to bring ‘next-generation’ GST reforms. He noted that the consensus achieved at the GST Council would strengthen the economy, support farmers and MSMEs, and improve ease of doing business across the country.

Experts have described the overhaul as one of the most consequential shifts since GST was introduced in 2017, aimed at leaving more money in people’s hands, spurring consumption and providing a boost to India’s economic momentum.

Also Read: GST Reforms: What Gets Cheaper And Costlier From Sep 22

Geetanjali Mishra

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