PM Modi announced a simplified two-slab GST structure (5% and 18%, with 40% for luxury goods) effective September 22, 2025, reducing taxes on 375 goods and services to ease living costs and boost MSMEs.
He emphasized Atmanirbhar Bharat, urging reduced dependence on foreign nations, particularly in technology and manufacturing, to strengthen India’s economy.
Modi reflected on the 2017 GST launch, explaining it was introduced to unify India’s fragmented tax system, replacing multiple state and central taxes
Prime Minister Narendra Modi delivered a significant address to the nation, focusing primarily on the upcoming implementation of the next-generation Goods and Services Tax (GST 2.0) reforms, set to take effect from September 22, 2025. The speech, broadcast live across multiple platforms, including the Prime Minister’s YouTube channel and social media handles, coincided with the eve of Navratri, adding a cultural context to the economic announcements. While the address centered on GST reforms, it also touched on broader themes of self-reliance and India’s economic progress in the 21st century.
The core of PM Modi’s address was the introduction of GST 2.0. The GST Council, comprising representatives from the Central and State governments, has streamlined the existing four-slab structure into a simpler two-slab system of 5% and 18%, with a 40% rate reserved for luxury, sin, and demerit goods. This reform, effective from September 22, 2025, will reduce taxes on approximately 375 goods and services, ranging from kitchen staples to electronics, medicines, and automobiles.
PM Modi emphasized that these changes aim to lower the cost of living for the common man, boost consumer demand, and support small and medium enterprises (MSMEs), farmers, the middle class, women, and youth. “GST 2.0 is a double dose of support and growth for the nation,” he stated, reiterating his earlier promise of a “double dhamaka of happiness” before Deepavali and Chhath Puja. The simplified tax structure is expected to enhance ease of doing business and accelerate India’s economic growth, he further added.
In addition to the GST reforms, the Prime Minister underscored the importance of self-reliance, or Atmanirbhar Bharat, as a cornerstone of India’s economic strategy. He highlighted the need to reduce dependence on foreign nations, particularly in critical sectors like technology and manufacturing. This message comes in the context of recent global developments, including strained India-US relations due to tariffs and visa fee hikes, though PM Modi did not directly address these issues in his speech.
The timing of the address, a day before the GST rate cuts and the start of Navratri, led to widespread speculation about its content. While the GST reforms were the focal point, some anticipated discussions on international issues, such as the recent US tariff impositions and the steep hike in H-1B visa fees to $100,000, which has raised concerns among Indian IT professionals. The Congress party, in a statement earlier that day, questioned whether PM Modi would address these issues or focus solely on the GST reforms. However, the Prime Minister’s speech remained centered on domestic economic policies. He explained how GST had replaced a complex web of central and state taxes—such as Value Added Tax (VAT), excise duty, and service tax—with a single, nationwide tax framework. “In 2017, GST laid the foundation for a stronger, more integrated economy. Today, GST 2.0 builds on that legacy to deliver even greater benefits to our citizens,” PM Modi stated.
