Biggest Decision Since Independence: PM Modi Hails GST Overhaul As Double Dhamaka

Prime Minister Narendra Modi on Thursday described the wide-ranging Goods and Services Tax (GST) reforms as the "biggest decision since India's Independence," calling them a "double dose of growth and support" for the country. Addressing National Awardee Teachers at his residence in Delhi, PM Modi said GST has now become simpler and more beneficial, and that the reforms were a "double dhamaka" ahead of Diwali.

The Prime Minister emphasized that the reforms have given India five gems (panch ratna): a simpler tax system, improved quality of life, boosted consumption and growth, ease of doing business, and strengthened cooperative federalism. "Without timely reforms, we cannot give India its rightful place in the global order. I promised a double blast of happiness before Diwali and Chhath Puja, and this reform delivers just that," he said, adding that the new structure will come into effect from September 22, the first day of Navratri.

PM Modi also hit out at Congress, accusing it of taxing everything during its tenure, including essentials, farm products, and even children's toffees. "If their system had continued, people would have paid Rs 20-25 tax on every Rs 100 purchase," he said, contrasting it with his government's push to increase savings and affordability.

GST Council Overhauls Tax Regime

On Wednesday, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, approved a sweeping overhaul of the system. The four-slab structure (5%, 12%, 18%, 28%) has been reduced to just two-5% and 18%-while retaining a special 40% rate for luxury cars, tobacco, and cigarettes. Rates on several daily-use items, including hair oil, cornflakes, TVs, life insurance, and health insurance, were also reduced.

One of the most notable changes is the cut in GST on cement from 28% to 18%, which experts say will have a transformative impact on the real estate sector.

Expert Voices Across Sectors

Real Estate:

Jetaish Gupta, Founder & Director, Adore Group, said: "The cut in GST on cement from 28% to 18% is a landmark move. Cement is among the largest input costs in real estate, and this reduction enables builders to deliver affordable homes faster. For homebuyers, tiered GST ensures affordability, giving India's housing dream a major push."

L.C. Mittal, Director, Motia Builders Group, added: "With rationalized slabs, developers will shift focus from cost pressures to value and innovation. Affordable and mid-segment housing will gain the most, ensuring quality homes for urban and semi-urban families."

Annuj Goel, Chairman, Goel Ganga Developments, noted: "This is a double bonanza-cheaper homes and lower GST. Developers can now channel savings into eco-friendly designs and amenities, making ownership more attractive."

Manoj Goyal, Director, Forteasia Realty Pvt. Ltd., said: "The lower tax on cement increases supply and revives demand. Combined with transparency in GST, this brings renewed trust and confidence across the realty sector."

Health Sector:

Jeevan Kasara, Director & CEO, Steris Healthcare Pvt. Ltd., said: "Reducing GST on medicines-from 12-18% to 5% or zero on life-saving drugs-is a victory for patients. It makes cancer drugs, therapies, and health devices accessible to more families, cutting treatment costs and ensuring better outcomes."

Personal Finance:

Siddharth Maurya, Founder & MD, Vibhavangal Anukulakara Pvt. Ltd., commented: "With reduced GST on insurance and medicines, families can invest more confidently in health and financial security. This reform is a step toward true financial inclusion-every rupee saved supports future aspirations."

MSME Sector:

Lokendra Singh Ranawat, Co-founder & CEO, WoodenStreet, said: "GST cuts, especially on essentials like cement, provide real relief for MSMEs. Lower tax burdens allow expansion, innovation, and job creation. It's a strong signal that the government views MSMEs as key partners in growth."

Women and Youth:

Ridhima Kansal, Director, Rosemoore, emphasized: "The simplified GST regime lowers compliance and reduces costs across housing and healthcare. This empowers women and young entrepreneurs to innovate and build resilient businesses, making families stronger."

Gunjan Goel, Director, Goel Ganga Developments, added: "Lower GST on housing inputs and medicines means households spend less, freeing resources for creativity and startups. It creates unprecedented opportunities for women-led ventures and youth entrepreneurship."

The Road Ahead

With reforms rolling out on September 22, the government expects the overhaul to ease compliance, boost consumption, and provide significant relief to households and industries alike. As PM Modi put it: "When GST was implemented eight years ago, a dream of decades came true. These latest reforms are the next generation leap toward making India self-reliant."