On the occasion of Independence Day, Prime Minister Narendra Modi announced from the Red Fort that major changes in the GST system will be implemented before Diwali, aimed at reducing the tax burden and benefiting small and medium enterprises. At present, there are four GST slabs — 5%, 12%, 18%, and 28% — which are proposed to be reduced to two main slabs, ‘Merit’ and ‘Standard,’ with separate rates applicable only to certain selected items. According to the Finance Ministry, the proposal sent to the Group of Ministers (GoM) is based on three key points — structural reforms, rationalization of rates, and simplification of life. The GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, is expected to be held in September 2025 to discuss this proposal, and once approved, the new system could be implemented before Diwali.