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GST: There can be a big relief in tax before Diwali, this is how the common man will benefit from GST reform..

Shikha Saxena | August 21, 2025 3:15 PM CST

Finance Minister Nirmala Sitharaman said in an important meeting with ministers on Wednesday that the government is moving rapidly towards next-generation GST reforms. She says that the direct benefit of these reforms will be given to the common man, farmers, middle class, and small traders (MSMEs).

The Finance Minister clearly said that the change in GST rates will improve the lives of common people, and they will get relief from inflation. Let us know how the common man will benefit from this reform. It is expected that the government will implement these reforms by Diwali, so that the public gets relief during the festive season.

How will farmers and small traders benefit?

The Finance Minister said that the changes proposed are especially focused on those goods and services that are related to farmers and small industries. Many such things that are used in farming or are necessary in small businesses will be put in a lower GST slab, so that the tax levied on them is reduced and their cost is reduced. This will give relief to farmers in agricultural goods, and MSMEs will benefit in production.

Many essential goods will become cheaper for the middle class
The Finance Minister also said that the government is planning to reduce the GST slab on many essential consumer goods which are used in everyday life, such as household goods, electronic appliances, insurance, and medical services. This will benefit the middle class more.

What is the government's plan?
In the meeting, Finance Minister Nirmala Sitharaman said that three main steps will be taken to simplify and rationalize GST. Structural reforms will also be done so that the process of paying tax can be made easier. Under this, it has been proposed that many items should be put in only two major rates of 5% and 18%, so that people do not get confused and paying tax becomes easier.

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