New Delhi | Sept 04, 2025

Prime Minister Narendra Modi on Thursday described the new Goods and Services Tax (GST) reforms as a “big and significant decision” taken jointly by the Union Government and the states, calling them a “double dose” for India’s support and growth.

Addressing a gathering in New Delhi, PM Modi said the GST Council had collectively agreed to the Union Government’s proposals on simplifying the GST framework. From September 22, the first day of Navratri, what he called “GST 2.0” will be rolled out across the country.

Simplified Structure

Under the new reforms, the GST system will be streamlined to just two tax rates — 5% and 18%, a change aimed at making compliance easier for businesses and reducing confusion for consumers. “The GST has become more simple and easy,” the Prime Minister remarked, adding that the move would boost transparency and encourage higher tax compliance.

PM Modi recalled his Independence Day promise of a “double dhamaka of happiness before Diwali and Chhath Puja,” noting that the implementation of GST 2.0 was part of that commitment.

Benefits Across Sectors

The Prime Minister emphasized that the reforms will benefit a broad cross-section of society, including the poor, the neo-middle class, women, students, farmers, and the youth. “These decisions will strengthen India’s 21st-century journey, improve ease of doing business, and create new opportunities for employment and investment,” he said.

He added that the reforms would also raise the quality of life, stimulate consumption, and give renewed momentum to economic growth.

Five New Gems for the Economy

PM Modi described the reforms as adding “five new gems (panch ratna)” to the Indian economy, though he did not elaborate on each point during his remarks. He stressed that the changes would reinforce cooperative federalism, as both the Union and state governments had worked together to achieve consensus on the reforms.

“This spirit of collaboration will help us move towards the goal of building a developed India,” he said.

Social Media Endorsement

Following the GST Council’s decision on Wednesday, chaired by Finance Minister Nirmala Sitharaman, PM Modi took to social media platform X to hail the outcome.

“Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth,” the Prime Minister wrote.

He added that the wide-ranging reforms “will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”

Political and Economic Significance

Observers see the announcement as both an economic and political signal ahead of the festive season. By simplifying the GST structure and reducing rates, the government is aiming to provide relief to consumers, while also energizing businesses with a friendlier tax environment.

As GST 2.0 takes effect later this month, the Modi government is betting that the reforms will help sustain growth momentum, attract investments, and cement India’s reputation as a global economic powerhouse.

For citizens, the “double dose” promised by the Prime Minister may soon translate into lower prices, better job opportunities, and a stronger economy heading into the festive season.