Prime Minister Narendra Modi announced the next-generation GST reform as a “Diwali gift” to citizens during his Independence Day address on 15 August 2025.

Quick Scoop: Next-Gen GST “Diwali Gift” Announcement

🕒 When Was It Announced?

  • The announcement came on 15 August 2025 , in the Prime Minister’s Independence Day speech from the Red Fort.
  • In this address, he promised that the next-generation GST reforms would be rolled out before Diwali 2025 , framing them as a festive gift or “Diwali gift” for citizens, especially consumers and MSMEs.

In essence, the idea was: lower and simpler GST rates as a Diwali-season benefit for people and businesses.

🎯 What Was Promised In This “Diwali Gift”?

  • Simplified GST slabs : Moving towards two main slabs, 5% and 18% , instead of the earlier four-slab structure (5%, 12%, 18%, 28%).
  • Lower tax burden : Focus on reducing GST on essentials and MSME-relevant sectors , with the explicit promise that tax rates would come down before Diwali.
  • Next-gen / GST 2.0 branding : Public commentary and analyses referred to it as “GST 2.0” and a Diwali gift meant to boost consumption and ease of doing business.

🔄 What Happened After The Announcement?

  • The GST Council met multiple times after the speech and, on 3 September 2025 , approved a two-tier GST structure (5% and 18%) and other reforms, paving the way for implementation.
  • The new GST structure — widely described as the next-generation GST reforms — was implemented from 22 September 2025 , kicking off what the government called a “GST Bachat Utsav” (savings festival).

📝 Mini FAQ Style Recap

  1. Question: On what exact date did PM Narendra Modi ji announce the next-gen GST reform and call it a Diwali gift?
    • Answer: On 15 August 2025 , during his Independence Day address.
  1. Question: When did these reforms actually start?
    • Answer: The next-generation GST reforms came into effect on 22 September 2025.

SEO Meta Description

Prime Minister Narendra Modi announced the next-gen GST reform as a “Diwali gift” to citizens in his Independence Day speech on 15 August 2025 , promising lower, simplified GST rates before Diwali.

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