NEW DELHI: Prime Minister Narendra Modi on Sunday said the Centre has circulated the draft of next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali. He said the move would benefit the poor, the middle class, and businesses of all sizes.Addressing an event after inaugurating two expressways, Modi said the Centre intends to make the GST law simpler and revise tax rates. The GST Council is expected to meet next month to deliberate on the proposal.“For us, reform means the expansion of good governance,” Modi said, adding that continuous focus was being placed on reforms. “This Diwali, citizens will receive a double bonus through the GST reform.” He expressed hope that states would swiftly support the initiative, ensuring the new structure could be rolled out before the festive season. Under the plan, the existing four GST slabs—5%, 12%, 18%, and 28%—will be replaced with just two: 5% and 18%, along with a special 40% bracket for demerit or ‘sin’ goods such as tobacco and online gaming. Items currently taxed at 12%, like butter, fruit juices, and dry fruits, would move to 5%, while electronics, cement, and other goods from the 28% slab would shift to 18%, as per the proposal. The reform aims to prevent accumulation of input tax credit and reduce demands for further tweaks.While the changes may initially cause revenue loss, the Centre expects increased consumption to offset the impact. Nearly 99% of goods in the 12% category and 90% of goods in the 28% slab are expected to move to lower rates, easing the burden on households and businesses.Alongside GST reforms, the prime minister reiterated his call for “vocal for local.” “To make India stronger, we must take inspiration from Chakradhari Mohan (Lord Shri Krishna) to make India self-reliant, we must follow the path of Charkhadhari Mohan (Mahatma Gandhi),” Modi said.Highways inauguratedPM Narendra Modi on Sunday inaugurated the Delhi section of Dwarka Expressway and Urban Extension Road-II worth `11,000 crore to reduce traffic congestion in the capital.
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