Next-Generation GST Reforms Proposed to Streamline Tax Rates During his address to the nation on 79th Independence Day (15th Aug 2025) Prime Minister Modi announced the introduction of Next-Generation GST reforms by this Diwali, aimed at reducing taxes on daily-use items. The current four-rate GST system (5%, 12%, 18%, 28%) is proposed to be streamlined into just two primary slabs: 5% for essential and commonly used items,18% for most other goods and services and a new 40% “sin and luxury” slab is proposed for items like tobacco, alcohol, and luxury cars
