Independence Day 2025 Special: PM Modi’s Big Mercantile and Services Bureau surprises, Ministry of Finance stocks…
On the occasion of India’s 79th Independence Day, Prime Minister Narendra Modi emphasized the transformative role of the Goods and Services Tax (GST) launched in 2017, calling it a landmark reform that benefits the country. He also stressed the need for the “next generation” of GST reforms, aiming to relieve the burden on ordinary people, farmers, middle class and MSMES, while bringing India closer to the vision of “Atmanirbhar Bharat”.
The Ministry of Finance announced that the central government has made detailed proposals to the Minister (GOM) of the GST Committee, which constitutes the GST Committee, on rationalization and structural reform. The proposed reforms depend on three core pillars – structural reform, rationalization of ratios and ease of life – with the aim of creating a simpler, more stable and transparent tax system.
Pillar 1: Structural Reform
Inverted structural correction: Align input and output tax rates to reduce the accumulation of input tax credits, thereby encouraging the increase in domestic value.
Solve classification problems: Simplify interest rate structure to minimize disputes, simplify compliance and ensure fairness across departments.
Stability and predictability: Provide long-term clarity on interest rates and policy directions to enhance industry confidence and achieve better business plans.
Pillar 2: Rate Ration
Reduce taxes on basic and ideal goods: Increase affordability, increase consumption and make key goods more accessible.
Reduced slabs: Towards a simpler GST structure, with two main slabs (standard and advantages), suitable for selected items only.
Utilizing fiscal space: Utilizing compensation termination provides greater flexibility in keeping tax rates consistent for long-term sustainability.
Prime Minister Shiri @narendramodiOn the occasion of the 79th Independence Day, the implementation of the Goods and Services Tax (GST) in 2017 was emphasized as a major reform that benefited the country.
The Prime Minister stressed the importance of the next generation of reforms…
– Ministry of Finance (@finminindia) August 15, 2025
Pillar 3: Easy to live
Seamless registration: a technology-driven time-limited process for small businesses and startups.
Pre-filled rewards: Reduce manual intervention, eliminate mismatch and ease compliance.
Automatic refund: Speed up refund processing for exporters and departments with a countdown tax structure.
The government’s goal is to implement these reforms through a cooperative federal approach and work closely with the states to reach consensus. The GST Committee is expected to consider the GOM’s recommendation at an upcoming meeting with the aim of launching reforms in the current fiscal year.
The Centre reiterated its commitment, expressing its vision to develop GST into a “simple, stable and transparent tax system” to drive inclusive growth, enhance formal economy, and enhance business ease of use across the country.
