GST Reforms: A Diwali Gift for Consumers

Prime Minister Narendra Modi announced next-generation GST reforms during his Independence Day speech, promising significant tax reductions by Diwali. These changes aim to ease inflation and boost consumer spending, particularly in the durable goods sector. Economists predict the reforms could lower Consumer Price Index (CPI) inflation by 40-80 basis points, fostering a favorable environment for a potential repo rate cut by the Reserve Bank of India (RBI) as soon as October. With retail inflation already at an eight-year low, the reforms are seen as a festive gift, enhancing economic growth and easing the tax burden on citizens.