GST Reforms Declared a 'True Diwali Gift' by Pawan Kalyan; Broad-Based Support Follows

Pawan Kalyan, the Deputy Chief Minister of Andhra Pradesh and head of the Jana Sena Party, called the new Goods and Services Tax (GST) changes a "true Diwali gift to the nation." He welcomed the big reforms and said that the lower taxes on basic needs, healthcare, education, and farming supplies will directly help poor and middle-class households. He congratulated the GST Council and Finance Minister Nirmala Sitharaman for making people's welfare the top priority in this historic change.

One of the most important adjustments to the GST since it started in 2017 was adopted during the 56th GST Council meeting. There are now only two GST slabs instead of four: 5% and 18%. The 40% rate for luxury and sin goods stays the same. The change is meant to make taxes easier to understand and follow, while also lowering the costs of compliance.

Some of the most important changes are:

• Basic needs and health care: Milk, paneer, roti, soaps, and life-saving drugs are either not taxed or taxed at a lower rate of 5%, which makes them cheaper to buy every day.

• Families regard the full removal of GST on education services and insurance fees as a huge relief.

• Agriculture and farming: Farmers will have an easier time because the costs of farming tools and supplies are now lower.

• Goods like TVs, air conditioners, cement, and small cars will now have an 18% GST charge instead of the previous 28%.

The adjustments will start on September 22, 2025, just before the Navratri celebrations.

Praise from many different areas

People have praised the changes as good for consumers and good for growth. "Big Diwali gift," said industrialist Harsh Goenka. Business leader Anand Mahindra asked for even more changes to speed up spending and investment. People on social media were happy about the help, but they wondered if businesses would pass on the gains to customers.

Worries About the Bigger Economy

Even while everyone was in a good mood, market expert Nilesh Shah warned of a bigger problem: more and more people are putting their funds into risky investments and stock market futures. He said that unfettered speculation might hurt long-term economic stability more than tax reforms could help.

Final Thoughts

The GST rationalisation is a big change in policy that makes India's tax system easier to understand and gives families real relief. Pawan Kalyan says it shows that government is based on compassion, and he calls it the "true Diwali gift" that people have been waiting for. In the next few months, we'll find out if the advantages get to consumers in full or get lost in the supply chain.