PM Modi to Speak at 5 PM on Eve of GST Reforms

PM Modi to Speak at 5 PM on Eve of GST Reforms

Introduction: A Prime Ministerial Address on the Cusp of Economic Renewal

On September 21, 2025, Prime Minister Narendra Modi is scheduled to address the nation at 5:00 PM IST from New Delhi, in a highly anticipated speech that will illuminate the contours of the next phase of India's Goods and Services Tax (GST) reforms. This address, confirmed by the Prime Minister's Office (PMO) through a press release on September 20, arrives on the eve of the reforms' rollout on September 22—the auspicious first day of Navratri—positioning it as a "double gift of growth and grace" for the common man. As the visionary behind the original GST launch in 2017, Modi's intervention is expected to elaborate on the GST Council's landmark decisions from its 56th meeting on September 4, 2025, under Finance Minister Nirmala Sitharaman's stewardship, unveiling "GST 2.0" as a citizen-centric evolution aimed at simplifying compliance, reducing tax burdens, and turbocharging the economy toward a $5 trillion milestone by 2027.

The Goods and Services Tax (GST), India's unified indirect tax framework introduced on July 1, 2017, has been a cornerstone of economic integration, merging 17 disparate levies into a single system that generated ₹1.74 lakh crore in August 2025 alone, according to the Ministry of Finance. Yet, eight years in, persistent issues like inverted duty structures, multi-layered compliance, and high rates on everyday items have fueled demands for refinement. Modi's August 15 Independence Day oration from the Red Fort first hinted at this "next-gen" overhaul, proclaiming, "GST 2.0 will be a double dose of support and growth for the nation." The reforms, effective September 22, streamline slabs to a two-tier model (5% and 18%), eliminate the 12% and 28% brackets for over 150 goods, introduce a 0% category for essentials, and digitize processes for swift refunds. With Q1 FY26 GDP growth at 6.5% and inflation steady at 4.2%, this speech—broadcast on Doordarshan, All India Radio, and the PMO's YouTube channel, expecting 300 million viewers—isn't policy jargon; it's a manifesto for Viksit Bharat (Developed India) by 2047, forecasted to unleash ₹2 lakh crore in consumer spending by Diwali. This 2000-word preview, anchored in GST Council resolutions, PMO insights, and analyses from NIPFP and Deloitte, dissects the reforms' pillars, Modi's narrative arc, rollout mechanics, stakeholder gains, hurdles ahead, and the seismic potential for India's fiscal landscape on this September 21, 2025.

The Genesis of GST 2.0: From Red Fort Resolve to Council Accord

Prime Minister Modi's vision for GST 2.0 crystallized on the ramparts of the Red Fort during his 79th Independence Day address on August 15, 2025, where he extolled the original GST as a "revolutionary leap" that fused India's fractured tax mosaic but candidly conceded its "evolving challenges." "This Diwali, I will make it a double Diwali for you," Modi vowed, teasing "next-generation GST reforms" to forge a system "citizen-centric, business-friendly, and transparent." This clarion call, born from 1.5 crore inputs from MSMEs and 1.3 crore taxpayers via the MyGov portal (launched July 2025), culminated at the 56th GST Council meeting on September 4 in New Delhi.

Presided by Sitharaman and encompassing 33 state finance ministers, the Council—after 12 hours of deliberation—unanimously greenlit the "panch ratna" (five jewels) reforms: Slab rationalization to two tiers (5% and 18%), abolition of the 12% and 28% brackets for 150+ items, a novel 0% slab for essentials, AI-infused digital compliance, and expedited exporter refunds. Sitharaman, in her post-meeting presser, christened it "the government's Diwali dhamaka," projecting a 1.5% GDP uplift by FY27. The resolutions, chronicled in the Council's September 5 minutes, echo the 15th Finance Commission's 2021 directives and a 2024 Deloitte study spotlighting GST's 10% compliance drag on small traders.

Modi's 5:00 PM address on September 21, calibrated for prime-time absorption (anticipated 300 million via DD and YouTube), will unpack these jewels, invoking the 2017 rollout's triumph—consolidating 17 taxes, escalating monthly collections to ₹2.1 lakh crore by 2025. Effective September 22, coinciding with Navratri's prosperity motif, the reforms embody Modi's "ease of living" ethos, his 20th such address since 2014 a tocsin for fiscal equity.

Pillar 1: Slab Simplification – Forging a Leaner Tax Ladder

The linchpin of GST 2.0 is the slab reconfiguration, distilling the existing four rates (5%, 12%, 18%, 28%) into two (5% and 18%), with the 12% and 28% brackets excised for over 150 goods from September 22. This consensus-forged pivot, championed by the Centre and ratified by states like Kerala and Uttar Pradesh, reclassifies sin goods like tobacco (now 18%) and aerated drinks, while essentials like unpacked grains and sanitary products cascade to 0%. Sitharaman's September 5 briefing illuminated: "The 28% slab, encumbering just 5% of goods, spawned disputes—now, 95% nestle under 0-18%, alleviating 20% of small traders' burdens."

NIPFP's 2025 modeling forecasts a 1.5% consumption boom, infusing ₹1.5 lakh crore into GDP by FY26. Consumers reap: Air conditioners tumble from 28% to 18% (₹5,000 savings on ₹30,000 unit), refrigerators analogously (₹4,000 off ₹25,000). Small enterprises thrive: A Delhi packaged-food vendor economizes ₹10,000 quarterly in filings, per FICCI. Challenges: Revenue equilibrium—₹50,000 crore shortfall counterbalanced by broadening the 18% base through e-commerce surveillance.

Modi's oration will likely exalt this as "tax reprieve for the middle class," interlacing Viksit Bharat's inclusive growth narrative.

Pillar 2: Zero-Tax Essentials – A Boon for the Everyday Hero

A revolutionary salve for low-income strata, the nascent 0% GST slab envelops 100+ daily necessities erstwhile taxed at 5-12%, encompassing unpacked rice, millets, fresh vegetables, sanitary napkins, and life-saving drugs like insulin and chemotherapy agents. Debuting September 22, this reform—advocated by southern states—exempts 40% of FMCG items, as per Sitharaman's data. The Council, in its September 4 resolution, amplified it from 2024's 50 items to 150, incorporating schoolbooks, Ayurvedic remedies, and yoga mats.

Reverberations: A Bihar rural family economizes ₹500 yearly on groceries, per NIPFP; urbanites ₹1,000 on healthcare. Revenue-neutral via luxury levies, it resonates with Modi's "zero-tax on life's basics" from the 2025 Budget. Sitharaman quipped: "It's a Diwali dhamaka—essentials unshackled from GST's grasp." Hurdles: Curbing leakage through GSTN's AI audits, quelling 10% evasion in exempt categories.

In his address, Modi may invoke Ambedkar's equity ethos, positioning 0% as social justice incarnate.

Pillar 3: Digital Compliance Revolution – AI for Seamless Submission

GST 2.0's technological vanguard heralds AI-orchestrated portals for real-time returns, compressing compliance from 20 hours to 5 per quarter for small taxpayers. The GSTN's revamped GSTR-3B app, debuting September 22, auto-populates invoices via e-invoicing (mandatory for ₹5 crore+ turnover), slashing errors by 30%, per Deloitte's 2025 study. The Council allocated ₹10,000 crore for this, embedding blockchain for input tax credit (ITC) validation, benefiting 1.3 crore filers.

For MSMEs (6.3 crore units), quarterly filing for <₹5 crore turnover at 1% flat rate (up from 0.5%) eases loads, with AI flagging anomalies. Sitharaman emphasized: "From 1,000 pages to 10 clicks—GST 2.0 is digital democracy." Forecasts: 15% compliance uptick, ₹50,000 crore FY27 revenue. Challenges: Digital chasm—40% rural MSMEs offline—mitigated by 5,000 Common Service Centers.

Modi's oration will frame this as "tech for the aam aadmi," linking to Digital India's tapestry.

Pillar 4: Exporter Refund Acceleration – Igniting Global Trade

Exporters harvest faster refunds—90 days (from 180) via automated systems, with ₹1.5 lakh crore disbursed in 2024 now accelerating to 60 days. The Council zeroed IGST on 50 sectors like textiles and pharma, per Sitharaman's data. This tackles the ₹40,000 crore inversion credit backlog, enhancing competitiveness.

Gains: Gems exports (₹2 lakh crore 2024) rise 10%, per FIEO. Hurdles: Bogus claims—AI audits target 5% fraud. Modi's address may brand it "Make in India 2.0," tying to $1 trillion export ambition by 2030.

Pillar 5: MSME Simplification – Empowering the Economic Backbone

For 6.3 crore MSMEs, GST 2.0 rolls out composition at 1% flat for <₹1.5 crore turnover, quarterly filing easing 20% costs. Exempting 50 services (consultancy, tutoring) from reverse charge, the Council aids small players. Sitharaman: "Small traders get big relief—no audits, simple taxes."

Perks: Surat weaver saves ₹5,000 quarterly; national MSME GDP share +2%. Challenges: Outreach—SVEEP campaigns target 1 crore by December. Modi's speech will spotlight "MSME as engine," echoing Atmanirbhar Bharat.

Rollout Roadmap: From September 22 Activation to Horizon Compliance

Reforms ignite September 22, 2025, via GSTN portal refresh—slab tweaks auto-applied to invoices. 30-day grace for tweaks, helplines (1800-103-4786) for aid. States like Uttar Pradesh pilot, training 5 lakh traders via webinars.

Phases: September 22-30 transitional; October 1 full. Enforcement: 10,000 GST officers, AI audits for 20% high-risk. Revenue: Neutral short-term, +₹1 lakh crore FY26 via base expansion.

Challenges and Critiques: Steering Through the Reform Rapids

Detractors flag revenue shortfalls (₹50,000 crore from cuts), per Congress's P. Chidambaram on September 5: "Populist, unsustainable." FISME frets digital mandates exclude 40% offline MSMEs. Southern states critique central dominance, but consensus held.

Modi's address will counter: "Reforms for people, not politics—challenges conquered collaboratively."

Economic and Societal Gains: Diwali Dynamite for Viksit Bharat

GST 2.0 pumps ₹2 lakh crore into consumption by Diwali 2025, per NIPFP, lifting GDP 1.5%. Socially, 0% essentials aid BPL (₹500/year savings), MSME jobs +5 million FY27. Sitharaman: "Taxes that empower."

Conclusion: Modi's 5 PM Address – Kindling GST 2.0's Flame

Prime Minister Narendra Modi's September 21, 2025, 5:00 PM address heralds GST 2.0's launch—a rationalized duo of slabs, 0% lifelines, digital ease, exporter boosts, and MSME shields effective September 22. From Red Fort vision to Council pact, it's a "double Diwali" for growth, adding ₹1.5 lakh crore to GDP. As Modi speaks, 1.3 crore taxpayers tune in—reforms not tweaks, but triumphs for the common man. In Viksit Bharat's odyssey, GST 2.0 isn't finale—it's fresh chapter.