'Committed to speedy reforms': PM Modi chairs key business meet; next-generation GST reforms discussed

NEW DELHI: Prime Minister Narendra Modi on Monday chaired a high-level meeting with senior ministers, secretaries and economists to discuss the roadmap for 'next-generation reforms' and a revision of GST laws.Sharing a post on X, the Prime Minister said, “Chaired a meeting to discuss the roadmap for Next-Generation Reforms.”“We are committed to speedy reforms across all sectors, which will boost Ease of Living, Ease of Doing Business and prosperity,” he added.The meeting was attended by Union ministers Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman, Shivraj Singh Chouhan, Piyush Goyal and Lalan Singh.This high level meeting came after PM Modi’s Independence Day address, where he promised a “Diwali gift” in the form of GST reforms and a lighter tax burden. “This Diwali, I am going to make it a double Diwali for you... Over the past eight years, we have undertaken a major reform in GST... We are bringing next-generation GST reforms. This will reduce the tax burden across the country,” he said, ensuring that these reforms directly benefit citizens and stimulate economic activity.

Following his announcement, the Centre rolled out a draft blueprint for GST 2.0, proposing two primary tax slabs, 5% for essential items and 18% for most other goods, to simplify the system and ease compliance.Currently, the GST framework has five slabs—nil, 5%, 12%, 18% and 28%—with additional rates of 0.25% and 3% on precious metals. Roughly 21% of all goods presently fall under the 5% bracket.PM Modi also announced the formation of a Task Force for Next-Generation Reforms, which will review existing laws, rules and procedures related to economic activities.The timing of these announcements is significant, as they come amid heightened trade tensions with the United States.US President Donald Trump imposed slapped India with an additional “penalty” tariff of 25% on all Indian imports, on top of the 25% duty already in place, citing India’s continued purchase of Russian oil. While the 25% rate took effect from August 7, 2025, the newly announced additional tariff will come into place August 27.In response, the ministry of external affairs called the move "unfortunate" and reiterated its stand that India would continue to protect its "own national interest."