Introduction:
Prime Minister Narendra Modi addressed the nation on September 21, 2025, at 5:00 PM IST, hailing the upcoming GST reforms as a transformative "double dose" for India's growth story, effective from September 22.
The address followed the 56th GST Council meeting on September 3, where Finance Minister Nirmala Sitharaman announced simplifications, slashing the 12% slab for 99% items to 5% and 90% of 28% to 18%.
Speech Highlights: Reforms as a "Game-Changer"
Modi's address focused on the reforms' benefits:
- Savings Projection: ₹2.5 lakh crore annually from GST cuts and I-T relief, putting more money in pockets.
- Swadeshi Call: "India’s prosperity from Swadeshi mantra; buy made-in-India for growth."
- Ease of Business: Reforms accelerate growth, attract investors, and support traders/entrepreneurs.
- GST Bachat Utsav: From September 22, a "savings festival" for the common man.
He linked it to good governance, saying reforms signify continuous improvement.
GST Reforms Details: What's Changing from September 22
The 56th Council streamlined slabs:
- 5% Slab: 99% of 12% items (essentials like dairy, bread, medicines) move here; beauty services (salons, yoga) at 5% without ITC.
- 18% Slab: 90% of 28% items (electronics, cars up to 1,500cc, insurance) reduced; uniform for most goods.
- 40% Slab: Ultra-luxury (high-end cars, jewelry); tobacco at 28% + cess unchanged.
- ITC Reversal: For pre-September 22 supplies under Section 18(4); retailers must display discounts.
Reactions: Praise from Allies, Jibes from Opposition
Allies lauded:
- Keshav Prasad Maurya (UP Deputy CM): "Historic for economy and self-reliance."
- N. Chandrababu Naidu (AP CM): "GST Bachat Utsav celebrates the nation."
- Ramdas Athawale: "Opposition's criticism benefits us."
Opposition criticized:
- Mallikarjun Kharge (Congress): Renewed "Gabbar Singh Tax" jibe; reforms inadequate, no compensation extension.
- Saurabh Bharadwaj (AAP): "GST news old; address H-1B, Trump tariffs."
X trends #GSTBachatUtsav (1M posts): 75% positive.
Historical Context: GST's Journey Under Modi
GST launched July 1, 2017, as a "one nation, one tax" reform, Modi's signature achievement.
Statistics: Savings and Economic Boost
- Annual Savings: ₹2.5 lakh crore from GST/I-T reforms.
- Items Affected: 375 (99% 12% to 5%, 90% 28% to 18%).
- Slabs: 5%, 18%, 40% (luxury).
| Category | Old Rate | New Rate | Savings Example |
|---|---|---|---|
| Dairy | 12% | 5% | ₹10/500g ghee |
| Electronics | 28% | 18% | ₹2,000-₹5,000 |
| Cars | 28% | 18% | ₹20,000-₹50,000 |
| Services | 18% ITC | 5% No ITC | 13% drop |
Economic boost: ₹50,000 crore consumption.
Expert Opinions
FICCI: "5-7% consumption rise."
Potential Impacts
Diwali sales up 15%; businesses gain ₹10,000 crore from ITC fixes. Risks: Luxury hike; opportunities for exports.
Conclusion
Modi's September 21, 2025, speech on GST reforms promises ₹2.5 lakh crore savings from September 22, urging Swadeshi for growth. A win for the middle class. Updates at nuvexic.com.
FAQ
Effective date?
September 22, 2025.
Key savings?
₹2.5 lakh crore annually.
New slabs?
5%, 18%, 40% luxury.
Opposition view?
Congress calls it "Gabbar Singh Tax."
Swadeshi focus?
Buy made-in-India for prosperity.
Economic boost?
₹50,000 crore consumption.
