India to Launch Next-Gen GST Reforms by Diwali 2025

Prime Minister Narendra Modi announced the rollout of next-generation Goods and Services Tax (GST) reforms by Diwali 2025, aimed at simplifying the tax regime and boosting economic growth.

The reforms will focus on reducing tax rates on essential goods, resolving classification disputes, and providing significant relief to Micro, Small, and Medium Enterprises (MSMEs), traders, and consumers.

The initiative is part of India’s broader vision to streamline governance and achieve a USD 10 trillion economy by 2047. The reforms are expected to address long-standing issues in the GST framework, including complex compliance processes and ambiguous tax classifications, which have burdened small businesses.

By lowering taxes on daily essentials, the government aims to ease the cost-of-living pressures for millions of consumers.Additionally, the reforms will enhance transparency and efficiency in tax administration, fostering a business-friendly environment.

Industry leaders have welcomed the announcement, anticipating a boost to MSMEs and retail sectors. The government’s focus on simplifying regulations aligns with its goal of making India a global economic powerhouse.

These changes are set to strengthen the GST system, ensuring it supports both economic growth and consumer welfare.