PM Modi's announcement of next-generation GST reforms is welcomed by business owners.

Prime Minister Narendra Modi's announcement of next-generation GST reforms has been warmly received by business owners and traders nationwide, who see it as a crucial step to streamline the system of taxes and promote trade.

According to Paramjit Singh Pamma, vice-president of the Federation of Sadar Bazar dealers Association, the revisions will significantly ease the tax rates that dealers now bear, which range from 5% to 28%.

“This has been a long-standing demand of the trading community, and we welcome this announcement by Prime Minister Modi. It will help traders immensely,” Pamma said.

Prime Minister Modi hinted to significant modifications to the Goods and Services Tax system during his Independence Day speech from the Red Fort.

“This Diwali, I am going to celebrate a double Diwali with you. The countrymen are going to get a big gift — there will be a huge reduction in GST on common household items,” he announced.

The Prime Minister referred to the action as "the demand of the hour" and emphasized the pressing necessity to examine and rationalize GST rates in order to lessen the tax burden on regular people.

Regarding the Prime Minister's call for buying more domestic products, Pamma stated that the reduction in the GST rate will boost domestic commerce and increase the competitiveness of domestic goods relative to imports.

He added that although more reforms in local marketplaces are still required, India's sizable market offers plenty of prospects for domestic sales.

The news coincides with the nation's eighth anniversary of the introduction of the Goods and Services Tax (GST) in 2017, a historic reform that consolidated India's indirect tax structure and made conducting business easier, especially for small and medium-sized businesses.