GST Reforms Bring "Double Dose of Happiness" Ahead of Diwali and Chhath Puja, Says PM Modi

Strategic Insights -

Prime Minister Narendra Modi on Thursday highlighted the benefits of the Goods and Services Tax (GST) reforms, saying they will bring a "double dose of happiness" to citizens ahead of Diwali and Chhath Puja. The reforms, which include slashing taxes on goods spanning household essentials, medicines, small cars, and appliances, are part of a sweeping overhaul of India's consumption tax. The GST Council's decision to reduce taxes on over 90% of goods across multiple categories is expected to have a net revenue implication of Rs.48,000 crore based on 2023-24 consumption patterns.

Key Takeaways:

  • The GST reforms will significantly reduce taxes on goods such as toothpaste, insurance, tractors, and cement, affecting everything from household essentials to luxury goods.
  • The government is reducing the GST structure from four slabs to essentially two main rates of 5% and 18%, with a special 40% levy reserved for luxury and sin goods.
  • The changes will make more than 90% of goods across multiple categories cheaper, including essential items and household appliances.
  • The reforms aim to boost domestic demand by simplifying the tax system, improving the quality of life of citizens, and promoting ease of doing business.
  • The government expects the reforms to lead to a new boost in consumption and growth, while also supporting investments and employment.

Statistics:

  • Over 90% of goods across multiple categories will become cheaper after the GST reforms.
  • The tax structure will be reduced from four slabs to essentially two main rates of 5% and 18%.
  • The government will have a net revenue implication of Rs.48,000 crore based on 2023-24 consumption patterns.
  • The reforms aim to simplify the tax system and improve the quality of life of citizens.

Sources:

  • Hindustan Times, PM Modi says GST reforms a source of 'double dose of happiness' ahead of Diwali and Chhath Puja (September 2025)
  • Press release from the Ministry of Finance, Government of India (September 2025)