PM Modi will address the nation today at 5 pm: Expect big announcement

PM Modi: Prime Minister Narendra Modi is scheduled to address the nation today, Sunday, September 21, 2025, at 5:00 PM. While the official topic of the address has not been confirmed, many sources speculate that he will speak about the new Goods and Services Tax (GST) reforms, known as GST 2.0, which are set to take effect tomorrow, September 22.

These reforms include a shift to a two-slab tax structure of 5% and 18%, with the aim of reducing prices, boosting consumer demand, and making goods more affordable for the middle class.

The address also coincides with the eve of Navratri. In a post on X (formerly Twitter) earlier today, PM Modi extended greetings for Shubho Mahalaya, wishing everyone well as the days of Durga Puja approach.

On September 3, 2025, the 56th GST Council, led by Union Finance Minister Nirmala Sitharaman, announced a significant overhaul of India’s Goods and Services Tax (GST) regime, often referred to as “GST 2.0.” These reforms are set to take effect tomorrow, September 22, 2025.

Here are the key changes:

Simplified Tax Structure: The previous four-slab system (5%, 12%, 18%, and 28%) has been replaced with a more streamlined structure. The new framework will primarily consist of a 5% “merit rate” for essential goods and an 18% “standard rate” for most goods and services. A new 40% rate has also been introduced for “sin” and luxury items, such as premium motorcycles, certain luxury cars, and tobacco products.

Impact on Consumers: The new rates are expected to provide significant relief to consumers. Many everyday items that were previously taxed at 12% or 18% will now fall under the 5% slab, leading to lower prices.

This includes items like soaps, shampoos, toothpaste, packaged food, and certain household items. Consumer durables such as air conditioners, televisions, and refrigerators will see their GST rate reduced from 28% to 18%. Additionally, life-saving drugs and individual life and health insurance policies will now be exempt from GST.

Boost for Key Sectors: The reforms are aimed at stimulating various sectors of the economy. The reduction in GST on items like cement, auto parts, and agricultural machinery is expected to boost the construction, automobile, and rural sectors. Lower GST rates on handicrafts are also intended to support artisans and promote rural economic growth.

Economic Impact: The government and economic experts anticipate that the GST 2.0 reforms will reduce inflation, increase household disposable income, and boost consumer demand. Finance Minister Nirmala Sitharaman has stated that the new tax regime could inject an estimated $24 billion into the economy.

The Union Finance Ministry has notified the new Central GST (CGST) rates, and states are expected to follow suit with their respective State GST (SGST) rates. Businesses are urged to update their systems, revise pricing, and ensure a smooth implementation of the new rates to pass on the benefits to consumers.

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