India is preparing to unveil its “next-generation GST reforms” by September 22, timed with the Navratri and festive season, according to government sources. The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3–4 to finalise a sweeping overhaul that will replace the current four-tier tax structure with a simplified two-slab system—5% and 18%, while luxury and sin goods will attract 40% GST.
The reforms, promised by Prime Minister Narendra Modi in his Independence Day speech as a “Diwali gift” to reduce the tax burden, are expected to deliver relief for consumers and businesses, especially MSMEs, by lowering rates on essentials like butter, dry fruits, and juices. Notifications on the new rates are likely within a week of the Council’s approval, ensuring implementation ahead of Dussehra.
While states anticipate a revenue shortfall of up to ₹50,000 crore, the Centre expects higher consumption to offset losses. Industry leaders, particularly in the automobile sector, are pressing for an early rollout to boost festive demand, with analysts calling the reform a game-changer in simplifying India’s tax regime.
