India's GST Overhaul: Simplified Tax Structure Aims to Lower Costs on Everyday Items

The proposal, announced as a "next-generation GST reform" by Prime Minister Narendra Modi during his Independence Day address on August 15, 2025, is intended to boost consumption, stimulate economic growth, and ease compliance for businesses. It has been sent to the Group of Ministers (GoM) on rate rationalization and is expected to be finalized at a GST Council meeting in September or October 2025, with implementation targeted before Diwali. The government anticipates that increased sales and better compliance will offset any short-term revenue losses from the lower tax rates.