New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday said the next generation reforms in Goods and Services Tax (GST) will be unveiled by Diwali, which will provide 'substantial' tax relief to common man and benefit small and medium enterprises.

Addressing the nation on 79th Independence Day, Modi said the time has come to undertake reforms in GST as the indirect tax regime has completed 8 years.

GST, which subsumed a host of taxes and local levies, was rolled out on July 1, 2017.

"We have discussed with states and we will usher in next generation GST reforms by Diwali, which will be a Diwali gift for citizens. Tax on items of common man will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy," Modi said in his speech from the ramparts of the Red Fort.

A Group of Ministers (GoM) comprising state finance ministers is already discussing the rate rationalisation and pruning of slabs in GST. PTI JD ANZ HVA

GST rate rationalisation announced to reduce taxes and prune slabs, easing costs for consumers and aiding MSMEs. GST rate rationalisation and structural reforms are to be implemented by Diwali to deliver substantial tax relief on everyday items and to provide targeted benefits to MSMEs. A Group of Ministers of state finance ministers is considering rate rationalisation and pruning of tax slabs as the mechanism to simplify the indirect tax framework and reduce tax burdens on common-use goods.