Diwali gift for the middle class has come early! In his Independence Day speech, the Prime Minister had hinted at the next generation of GST reforms. Building on this vision, the GST Council, under the leadership of Finance Minister Nirmala Sitharaman, announced sweeping changes to India’s tax system.

As part of rationalising the GST structure, four tax slabs have now been reduced to two. This major simplification gives significant relief to middle-class households, as most essential goods now either attract no tax or only a 5 per cent levy.

At a time when global powers are adopting defensive trade policies, the Government of India has struck the right chord. The reforms are designed to boost domestic demand, drive higher consumption, and fuel investments. This decisive move reflects the government’s commitment to cutting red tape and making taxation more transparent, efficient, and fair.

While the macroeconomic benefits are important, the reforms are felt most directly in the everyday lives of middle-class families. The Budget’s income tax relief and the GST rate cuts together bring double benefits.

Consider a family earning Rs 12 lakh a year that spends half of it on essentials........

© News18