In a landmark announcement ahead of Diwali, the Government of India unveiled the Next-Generation GST reforms, promising major relief for households, farmers, businesses, and entrepreneurs. The sweeping changes are designed to make everyday essentials more affordable, strengthen agriculture, and simplify compliance — a step towards building an Aatmanirbhar Bharat.
Under the revised rates, daily-use items such as hair oil, shampoo, toothpaste, toilet soaps, shaving cream, and toothbrushes will now attract just 5% GST, down from 18%. Dairy products like butter, ghee, and cheese have been reduced from 12% to 5%, while household goods including utensils, baby products, and sewing machines also see sharp tax cuts.
The agricultural sector receives a significant boost with tractors, tractor tyres, drip irrigation systems, and bio-pesticides moving to a lower 5% slab. Healthcare has also been prioritized — individual health and life insurance premiums will now be exempt from GST, while medical-grade oxygen, diagnostic kits, thermometers, glucometers, and corrective spectacles will become more affordable.
Automobiles and electronics have not been left behind. Small cars, two-wheelers, three-wheelers, goods transport vehicles, and motorcycles will now attract 18% GST, down from 28%. Large electronic appliances such as air conditioners, televisions above 32 inches, monitors, projectors, and dishwashers also see a reduction from 28% to 18%.
Prime Minister Narendra Modi called the reform a “historic Diwali gift for the nation”, adding that it would bring “happiness for all — from farmers to enterprises, households to businesses.”
Alongside tax relief, the government has announced faster GST registration within 3 working days for eligible applicants and provisional refunds through system-based evaluation for zero-rated supplies and inverted duty structures, ensuring ease of doing business for MSMEs and entrepreneurs.
Meanwhile, India achieved another proud milestone in its digital journey. In just nine years, the Unified Payments Interface (UPI) has overtaken VISA to become the No.1 real-time payment system in the world, processing over 650 million transactions daily. UPI now accounts for nearly 50% of the world’s real-time payments, revolutionizing how Indians pay — from tea stalls to shopping malls.
The twin achievements of Next-Gen GST reforms and UPI’s global leadership mark a transformative moment in India’s growth story — one that combines affordability, inclusivity, and innovation for a stronger future.
