The Prime Minister of India, Narendra Modi, introduced the new Next-Gen GST Structure in India on Monday, September 22, 2025.
GST rate will be decreased by 5% and 18% in a new two-tier structure. The new rates of GST will start from the first day of Navratri.
➥ PM ( Prime Minister of India ) says on GST ReForm
➢ PM says in the Independence Day speech is bringing Next-Generation reforms in GST in India. On the social media platform, “During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST.” Says by PM On X
➥ Vitta Mantri ( Finance Minister of India ) says on GST ReForm
➢ The GST Council, chaired by Finance Minister Nirmala Sitharaman, has simplified the GST structure by reducing the number of tax slabs. Earlier, there were four main slabs — 5%, 12%, 18%, and 28%. Now, only two main rates will be used: 5% and 18%. A separate high rate of 40% will apply to luxury and sin goods like tobacco and alcohol.
These reforms aim to make goods and services cheaper for the public, boost the economy, support small businesses, and create a fairer and more efficient tax system. The goal is to improve everyday life for people, support small businesses, and boost key sectors of the economy.
➢ GST rates have been reduced from four slabs to just two
5% (Merit Rate) for essential/common items
18% (Standard Rate) for most goods and services
40% (De-merit Rate) for luxury and sin goods (like tobacco)
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