India introduced the Goods and Services Tax in 2017 to create a common national framework. Under Prime Minister Narendra Modi’s vision, the government started Next-Gen GST to reduce rates and make compliance easier. These rate changes took effect on September 22, 2025, to give households relief and businesses greater certainty.
India’s ambition to become a Viksit Bharat requires an economy in which enterprises of every size can grow, wherever they begin. Over the past 12 years, our government has worked to create those conditions. The introduction of the Goods and Services Tax (GST) in 2017 established a common national framework for indirect taxation. Next-Gen GST carries that effort forward, drawing on nine years of implementation and the experience of taxpayers and States.
Under Prime Minister Narendra Modi’s vision, Next-Gen GST was conceived with two connected purposes: to reduce and rationalise rates, and to make compliance easier. The rate changes took effect on September 22, 2025. The next phase of process reforms will come before the GST Council shortly. Together, these efforts seek to give households relief, businesses greater certainty and taxpayers a system in which they can fulfil their obligations without avoidable difficulty.