Prime Minister Narendra Modi has lit up festive spirits by promising a “double Diwali bonus” for the people of India through sweeping changes in the Goods and Services Tax (GST) system.
Unveiling the reform blueprint, the Prime Minister said the government is working closely with states to simplify the tax structure and bring tangible relief to both households and businesses before the festival season.
The draft proposal includes reducing GST slabs to just 5% and 18%, scrapping the existing 12% and 28% rates, while keeping higher taxes only for luxury and sin goods.
Modi asserted that these measures would strengthen economic growth, lower consumer costs, and boost ease of doing business.
The announcement has sparked optimism in markets, with sectors such as auto, cement, consumer goods, and banking already witnessing a surge.
The GST Council is expected to meet in September to finalize the changes.
