Finance Minister Nirmala Sitharaman unveiled a bold roadmap for India’s taxation regime, announcing next-generation Goods and Services Tax (GST) reforms at the 120th Foundation Day celebrations of City Union Bank in Chennai. Joined by dignitaries including President Droupadi Murmu and Tamil Nadu Governor RN Ravi, the minister set forth a new economic vision ahead of a crucial GST Council meeting.
The reforms, driven by a Task Force created by Prime Minister Narendra Modi, target simplifying regulations, lowering compliance costs, and creating a more enabling environment for startups and MSMEs. Core changes include plans to consolidate GST slabs to primarily 5% and 18%, reducing the tax and compliance burden on everyday items. This builds on Modi’s recent Independence Day promise to deliver a “Diwali bonanza” with lower GST rates and easier compliance for common citizens.
Finance Minister Sitharaman emphasized that these moves aim to further India’s Viksit Bharat 2047 vision, urging banks to expand credit, fuel infrastructure, and embrace technology and transparency. As proof of financial inclusion’s progress, she noted that 56 crore Jan Dhan accounts have been opened, with the majority benefiting women and residents in rural and semi-urban areas.
India’s economic resilience was highlighted with recent strong GDP growth, declining inflation, and an S&P sovereign rating upgrade. Sitharaman reaffirmed the transformation will make the economy “absolutely open and transparent,” setting a new standard for the nation’s financial future.
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