PM Double Diwali Gift: If you’ve been hoping for some financial relief, there’s exciting news straight from Prime Minister Narendra Modi. During his Independence Day speech on August 15, 2025, at 7:50 PM IST, he announced a big update: a next-generation GST regime with lower taxes is coming before this Diwali 2025. Calling it a “festive gift” for individuals, MSMEs, and the economy, this move aims to lighten your wallet’s load.
PM Modi highlighted the journey of GST since its launch eight years ago, simplifying taxes and boosting growth. Now, after reviews and talks with states, he’s ready to roll out this upgraded system. The current GST has five slabs—0%, 5%, 12%, 18%, and 28%, with 12% and 18% covering most goods. About 21% of items fall under 5%, 19% under 12%, and 44% under 18%. The plan? Ditch the 12% slab and spread those items between 5% and 18%, though final details are still cooking. This could make essentials cheaper and give MSMEs a breather, all while sparking economic growth amid global tariff jitters from the U.S.
PM Double Diwali Gift, Next-Generation GST with Lower Tax Rates Coming Soon
| Aspect | Details | Action Required |
|---|---|---|
| Announcement Date | August 15, 2025 | Stay updated via news |
| Launch Target | Before Diwali 2025 (Oct–Nov 2025) | Plan purchases for lower rates |
| Current Slabs | 0%, 5%, 12%, 18%, 28% | Note items in 12% may shift |
| Proposed Change | Remove 12%, adjust to 5% and 18% | Check final rates later |
| Beneficiaries | Individuals, MSMEs, economy | Prepare for cheaper essentials |
| Helpline | 1800-1200-232 (CBIC) | Call for GST queries |
Who Benefits from the New GST?
This shake-up is for everyone, but especially:
- Individuals: Lower taxes on daily needs like food and services.
- MSMEs: Reduced rates to ease business costs.
- Economy: Boosted spending to fuel growth.
What’s Changing and When?
The big change is slashing rates, with the 12% band likely gone, redistributed to 5% and 18%. Expect:
- Launch Date: Before Diwali 2025 (around October 20–November 3, 2025).
- Impact: Cheaper goods, happier households, and a thriving market.
Are New Stimulus Checks on the Way After Trump’s Tariff Rebate Proposal?
$600 Stimulus Payment for Adults and Dependents – Who Qualifies and When to Expect?
Why It Matters in 2025
With food prices up 5% and fuel costs rising, lower taxes could ease the pinch. This move also counters global economic wobbles, like U.S. tariffs, by encouraging spending. Experts say initial revenue dips might balance out with higher sales and better tax compliance.
FAQs PM Double Diwali Gift Next-Generation GST with Lower Tax Rates Coming Soon
When will the new GST start?
It’s slated before Diwali 2025, likely October–November 2025.
Who gets the tax cut benefits?
Individuals, MSMEs, and the broader economy will see relief.
What’s happening to the 12% slab?
It’s expected to be removed, with items moving to 5% or 18%.
How will this affect my business?
MSMEs could save on taxes, boosting profits.
Where can I learn more?
Check updates on cbic.gov.in or call 1800-1200-232.
