Celebrations have commenced with GST reform announcements

September 3, 2025, will be remembered as a historic day in India. The government has set a remarkable precedent by honouring its commitment to deliver a Diwali bonanza to the common man through the announcement of bold decisions by way of goods and services tax (GST) reforms.

- ANITA RASTOGI

After a full day deliberation attended by all members of the GST Council, significant GST reforms have been announced with an objective to move to a simplified two slab rate structure (5 per cent and 18 per cent), as was originally envisaged. The 80-page press release issued by the government is full of recommendations around rate rationalisation, measures for facilitation of trade, process reforms and other measures pertaining to law and procedure.

The intent behind these reforms is indisputable, to support the common man and bolster domestic industries. Introducing such significant changes at a time when the economy is grappling with socioeconomic pressures is a testament to the government's vision.

This courageous move signals the emergence of a stronger economy, clearly indicating that India is firmly set on a path of progress and growth.

The government has devoted considerable effort and resources to ensuring that relief measures are effectively extended across all critical sectors. In particular, significant attention has been given to essential areas such as food, agriculture, fertiliser, renewable energy, textile, health, education, common man items, consumer electronics, transportation etc.