Next-gen GST reforms to roll out tomorrow: 400 items shifted to lower tax slabs, prices set to drop by up to 20%

The Confederation of All India Traders (CAIT), while praising the visionary leadership of Prime Minister Narendra Modi, stated that under his guidance, the next phase of GST reforms will be introduced across the country from tomorrow.

These reforms are among the most groundbreaking tax transformations in independent India, aimed at empowering small traders, boosting consumer confidence, and moving the country's economy towards the $10 trillion milestone. These reforms will not only benefit the trading community but also lead to substantial savings for consumers.

CAIT National Secretary General Praveen Khandelwal stated that, for the first time since independence, nearly 400 items have been shifted from the 12% and 18% tax brackets to the 5% tax bracket, while the 28% bracket has been abolished, with most items now falling under the 18% bracket.

According to estimates, this bold decision will result in a 15–20% reduction in prices, directly benefiting consumers, and undoubtedly boosting consumption, which will in turn significantly increase trade. He further added that CAIT has advised all trade associations across the country to ensure that the benefit of this price reduction is passed on to consumers both in letter and in spirit.

Khandelwal highlighted the key features of these reforms: “One Nation – One Tax – One Simplicity”, Filing returns and compliance will now become easier, faster, and completely hassle-free.

Trader- and Consumer-Friendly: Rationalising tax slabs will provide direct relief to both businesses and citizens. Digital India, Transparent India: Technology-driven systems will reduce corruption, enhance transparency, and build trust. Strengthening Atmanirbhar Bharat: With MSMEs, startups, and small shopkeepers being the biggest beneficiaries, Prime Minister Modi’s vision of a self-reliant India will be further strengthened.

Khandelwal stated, “Prime Minister Narendra Modi has once again demonstrated that he is the architect of New India’s economic revolution. The next generation of GST reforms, including the historic reduction of 400 items to lower tax slabs, will be remembered as a milestone in India’s growth story. Traders across the country welcome these reforms as a festival of economic freedom.”

These reforms are more than just administrative changes – they are a historic gift for 140 crore Indians that will make business easier, lower prices, strengthen the economy, and bring India closer to becoming the world’s third-largest economy.