Next-Gen GST: A People-Friendly Reform for a Viksit Bharat

By: M. Asnikumar Singh

When the Goods and Services Tax (GST) was introduced in 2017, it was hailed as a historic step in unifying India’s indirect tax system. Over the years, however, concerns grew over its complexity, compliance burden, and the higher cost it imposed on certain goods and services. The recently announced Next-Gen GST reforms, set to roll out from September 2025, mark a decisive attempt to address these concerns and make GST truly people-friendly.

At the heart of the reforms is simplicity. The tax structure has been streamlined into mainly two slabs – 5% and 18% – with a higher rate for luxury goods. This clarity not only reduces confusion for businesses but also ensures that consumers face more predictable and fair pricing. Essential goods, medicines, and many daily-use items have been shifted to lower tax brackets, directly reducing household expenses. Health and life insurance premiums are now exempt, bringing much-needed relief to families and encouraging wider adoption of financial security.

For Manipur, this translates into meaningful savings for ordinary households. Families struggling with rising costs of medicines, diagnostic tests, or basic household items will now see a lighter burden. Local pharmacies across small towns, often the first point of care for villagers, will be able to supply medicines at more affordable rates. Similarly, small cars and two-wheelers, which are a lifeline in our state, where public transport is limited, will become more affordable for young families.

Equally important is the push to reduce compliance burdens. Small businesses and start-ups, often the engines of local growth, have long struggled with cumbersome paperwork and complicated classifications. Pre-filled returns, faster refunds, and fewer disputes mean entrepreneurs can focus on innovation and service rather than endless form-filling. For Manipuri youth who are venturing into handloom enterprises, handicrafts, eco-tourism projects, or IT start-ups, this simplification is a real incentive. It tells them: focus on your dream, not on red tape.

The reforms also act as a stimulus for economic activity. By lowering taxes on goods like small vehicles, home appliances, and medical devices, demand is likely to rise, creating a ripple effect that supports jobs, investment, and manufacturing. In Manipur’s context, this could mean higher demand for handloom products from Moirang or artisanal crafts from Ukhrul, as families save more and spend more locally. The tourism and hospitality sector, will also benefit from lower costs on services and inputs.

At the same time, these reforms must be seen in the broader light of Prime Minister Narendra Modi ji’s call for Swadeshi and self-reliance. His inspiring words – “I buy Swadeshi” and “I sell Swadeshi” – are not mere slogans but guiding principles. They encourage us to support local industries, prefer indigenous products, and promote entrepreneurship rooted in our culture and resources. In Manipur, this aligns perfectly with strengthening our handloom sector, promoting our unique agricultural products, and building a sustainable eco-tourism model. Embracing this spirit will not only reduce dependence on imports but also make India truly Atmanirbhar.

Most significantly, these reforms are a building block for ‘Viksit Bharat 2047’. A tax system that is simple, transparent, and fair is essential for sustainable growth. When households save more, when businesses grow faster, and when youth feel encouraged to innovate, the entire nation moves closer to its shared aspiration of becoming a developed country. For Manipur, it means being better connected to national markets, having stronger local industries, and seeing its youth take their rightful place as builders of a modern economy.

Next-Gen GST is more than a technical tax adjustment. It is a statement of intent: to make governance people-centric, to reduce unnecessary burdens, and to open opportunities for the young and aspiring. If implemented with sincerity and vigilance, this reform can become a cornerstone in India’s journey towards a more prosperous, inclusive, and developed future – and a thriving Manipur will be an integral part of that story.

(M. Asnikumar Singh– The writer is a columnist and environmentalist, with a long-standing commitment to public issues and community welfare. He has previously served as State General Secretary and Vice President of BJP Manipur Pradesh and is currently the State Spokesperson of BJP Manipur Pradesh)