New Delhi: Prime Minister Narendra Modi has lauded the GST Council’s unanimous approval of sweeping tax reforms, calling it a landmark step to ease the lives of citizens and boost business confidence. The Council has introduced a simplified two-tier GST structure of 5% and 18%, replacing the earlier four slabs, while retaining a 40% levy on luxury and “sin” goods. Effective from September 22, 2025, just ahead of Navratri, the reforms will make everyday essentials like toothpaste, shampoo, hair oil, kitchenware, rotis, paneer, UHT milk, chocolates, butter, and ghee cheaper, while small cars, motorcycles, and appliances will see their tax rate cut to 18% from 28%. Life-saving drugs, education, and health insurance will also enjoy tax relief, while MSMEs stand to gain from reduced raw material costs and simplified compliance. Modi emphasized that the reforms fulfill his Independence Day pledge of “Next-Generation GST,” enhancing ease of living and doing business. Leaders across the government hailed the decision as historic, with markets responding positively through rallies in auto and consumer goods stocks, as analysts forecast a surge in consumption and GDP growth.
