FX.co ★ India PM Modi Vows GST Relief on Goods and Services

In his recent address, Prime Minister Narendra Modi announced upcoming reforms to India's Goods and Services Tax (GST), stating that these changes will be implemented in the next few months. During his Independence Day speech, Modi highlighted that these modifications aim to deliver substantial tax relief on everyday items, sparking anticipation of a notable reduction in GST rates ahead of the festive season. This announcement has led to increased expectations for a major revamp of the current multi-tier GST system, which has been operational since 2017. The existing structure, featuring rates of 0%, 5%, 12%, 18%, and 28%, has been frequently criticized for its complexity and the burden it places on compliance. "I will deliver a remarkable gift this Diwali. Over the past eight years, we enacted significant GST reforms, simplifying the tax system... Now, we are introducing the 'next generation GST reform.' It will serve as a Diwali gift. Taxes on common, individual services will be substantially reduced... This will be advantageous for MSMEs and will also bolster the economy," Modi stated, as reported by India Today.