Modi Hints At GST Overhaul: Diwali Gift Of Lower Taxes Coming Soon

This Diwali, the fireworks may not just be in the skies but also in your savings. Prime Minister Narendra Modi has announced plans for a next-gen GST regime, signalling a major revamp of India’s tax system. Government sources reveal that reforms could include removal of the 12% slab, rate rationalisation for health and life insurance, and changes to essential item taxation. The GST Council will meet in September to finalise details, with reforms expected to benefit households, MSMEs, and boost consumption. While the Opposition calls it “damage control” against US tariff pressure, experts believe it will revive demand and ease compliance. After personal tax relief earlier this year, is GST 2.0 Modi’s big Diwali gift?