Prime Minister Narendra Modi announced in his Independence Day speech that GST reforms will reduce the tax burden from this Diwali. The finance ministry detailed plans for a two-slab GST system, replacing the current four slabs. The GST Council is set to discuss it next month.

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• GST rates to shift from 5–28% slabs to two-slab system
• Two categories: standard and merit, plus special rates for select items
• Relief aimed at common man, middle class, farmers, MSMEs
• Expected rollout from this Diwali
• Finance ministry highlights 3 pillars: structural reform, rate rationalization, ease of living
• Structural reform to fix inverted duty structures, cut disputes
• Rate rationalization to lower tax on essentials, boost consumption
• Ease of living via tech-driven compliance, pre-filled returns, faster refunds
• End of compensation cess gives room for new GST design
• GST Council to review proposals in upcoming meeting