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.