India, Aug. 15 -- When Prime Minister Narendra Modi referred to the new GST reforms as a "Diwali gift," he was not just capturing the festive spirit. He was indicating a change in how India's tax system will operate for both citizens and businesses, particularly the country's large MSME sector.

These reforms, expected to begin by October 2025, aim to lower taxes, simplify compliance, and bring more predictability to the system. If implemented effectively, they could transform how small and medium enterprises manage costs, plan for growth, and cater to their customers.

The existing GST system, which has four main rates of 5%, 12%, 18%, and 28%, will transition to a simplified structure with just two slabs. One will be a standard rate, wh...