GST reforms: In a matter of good news for residents of India the central government is expected to reduce the Goods and Services Tax (GST) rates for most of the consumer goods and services as announced by PM Modi on Independence day 2025. As per media reports the central government is planning a major GST reform by reducing the current four tax slabs (5% 12% 18% 28%) to just two – Merit and Standard. As a part of the reforms the central government is expected to reduce GST rates on several items in the 12% and 28% tax slabs. GST reforms: What products will become cheaper? If the GST reforms are announced daily essential consumer products like cookware snacks soap and hair oil may become cheaper while electronics such as mobiles TVs and refrigerators could see tax relief under the 18% slab. Along with daily essentials big-ticket items like cement cars and ACs may also cost less making home-building and big purchases easier. Apart from these items the long-awaited reduction of GST rates on insurance premiums may drop offering further savings. What PM Modi said on GST reduction? Signaling sweeping changes in the rates of Goods and Services Tax (GST) PM Modi said “This Diwali I am going to celebrate a double Diwali for you. The countrymen are going to get a big gift there will be a drastic cut on GST on common household items. GST rates will be reduced drastically. Tax will be reduced for the common people” PM Modi added in his speech on the August 15 2025. How has stock market reacted to GST reforms? As a result of the announcement of upcoming GST reforms in the country the Indian stock market ended the session in green on Monday after heavy buying in sectors like auto banking and consumer durable stocks a report by news agency IANS said. In a positive development for Indian Stock market the Sensex closed at 81273.75 up 676.09 points or 0.84 per cent. (With inputs from agencies)