“Ek Baar Aap GST Dekh Lo”: PM Modi’s Nudge Sparks India’s Biggest GST Reform in 8 Years

New Delhi, Sept 7: A casual reminder from Prime Minister Narendra Modi—“Ek baar aap GST dekh lo”—to Finance Minister Nirmala Sitharaman in December 2024 ignited a comprehensive review of India's GST system. This moment marked the beginning of the most significant overhaul of the Goods and Services Tax in eight years. [Daily Excelsior report]

A Moment of Realisation

Sitharaman had been immersed in preparing the 2025–26 Budget when the PM's nudge prompted a deeper look into GST’s four-tier framework and numerous compliance difficulties. This led to a parallel push: modernizing back-end systems alongside structural reforms. [Daily Excelsior report]

Reform Highlights

The GST Council approved a simplified tax structure, condensing numerous slabs into just two: 5% and 18%, along with a 40% surcharge for luxury and sin goods. Essentials such as food staples, medicines, and household items now attract lower tax or no tax, while electronics and vehicles will see a reduced rate of 18%. The changes are scheduled to take effect from September 22, encompassing Diwali and Navratri festive benefits.

Why It Matters

Major consumer goods, including bread, soaps, and insurance premiums, are now significantly more affordable. Economists anticipate reduction in household inflation rates and a boost to rural consumption, potentially adding up to ₹20 lakh crore to GDP.

A Positive Response from Industry

Industry leaders described the GST revamp as “landmark” or “GST 2.0” — a game-changer for MSMEs and a significant boost to ease of doing business.

Reform Driven by Simplicity and Accessibility

This initiative emerged partly in response to trade headwinds and global disruptions, including U.S. tariffs. India’s revamped GST structure—stripped of archaic slabs and geared toward core domestic drivers—marks a new chapter in tax policy, aimed at curbing complexity and extending economic stimulus.

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Source: Daily Excelsior (Read Original)

Labels: GST Reform 2025, PM Modi, Nirmala Sitharaman, Tax Simplification, Economic Relief

Tags: #GSTReform #GST2025 #PMModi #NirmalaSitharaman #TaxSimplification

Disclaimer: This article is a rewritten summary based on reporting by Daily Excelsior and additional analysis. Jammu News Portal does not assume responsibility for the accuracy of external content.