By Krishna Dua 
PM Modi to Address Nation at 5 PM Today on GST Reforms
On September 21, 2025, Prime Minister Narendra Modi is poised to deliver a historic address to the nation at 5:00 PM IST from New Delhi, unveiling the contours of “GST 2.0″—the next-generation reforms to India’s Goods and Services Tax regime that promise to simplify taxation, alleviate the burden on common citizens, and supercharge economic growth. This speech, confirmed by the Prime Minister’s Office (PMO) through a press release on September 20, arrives on the eve of the reforms’ implementation on September 22, the first day of Navratri, framing it as a “double Diwali gift” of support and prosperity. As the architect of the original GST rollout in 2017, Modi’s intervention—broadcast live on Doordarshan, All India Radio, and streamed on the PMO’s YouTube channel—will elaborate on the GST Council’s landmark decisions from its 56th meeting on September 4, 2025, under Finance Minister Nirmala Sitharaman’s chairmanship.
The Goods and Services Tax (GST), India’s unified indirect tax system launched on July 1, 2017, revolutionized the economy by consolidating 17 disparate levies into a single framework, generating ₹1.74 lakh crore in collections for August 2025 alone, according to the Ministry of Finance. However, eight years on, challenges like inverted duty structures, compliance complexities, and high rates on essentials have prompted calls for evolution. Modi’s August 15 Independence Day address from the Red Fort first hinted at this “next-gen” overhaul, declaring, “GST 2.0 will be a double dose of support and growth for the nation.” The reforms, effective September 22, rationalize slabs to a two-tier structure (5% and 18%), abolish the 12% and 28% brackets for 150+ items, introduce a 0% category for life-saving essentials, and digitize filing for seamless refunds. With the economy clocking 6.5% growth in Q1 FY26 and inflation at 4.2%, this address isn’t just policy talk—it’s a manifesto for Viksit Bharat (Developed India) by 2047, projected to inject ₹2 lakh crore into consumer spending by Diwali. This 2000-word preview, based on GST Council minutes, PMO briefings, and economic projections from NIPFP and Deloitte, dissects the reforms’ pillars, Modi’s narrative, implementation roadmap, stakeholder benefits, potential hurdles, and transformative potential, positioning September 21, 2025, as the dawn of a more equitable fiscal era.
The Genesis of GST 2.0: From Red Fort Vision to Council Consensus
Prime Minister Modi’s blueprint for GST 2.0 was etched on the ramparts of the Red Fort during his 79th Independence Day speech on August 15, 2025, where he lauded the original GST as a “revolutionary stride” that unified India’s fractured tax mosaic but candidly acknowledged its “growing pains.” “This Diwali, I am going to make it a double Diwali for you,” Modi proclaimed, teasing “next-generation GST reforms” to render the system “citizen-centric, business-friendly, and transparent.” This pledge, rooted in 1.5 crore suggestions from MSMEs and 1.3 crore taxpayers via the MyGov portal (launched July 2025), crystallized at the 56th GST Council meeting on September 4 in New Delhi.
Chaired by Sitharaman and comprising 33 state finance ministers, the Council—after 12 hours of deliberations—unanimously approved the “panch ratna” (five jewels) reforms: Slab rationalization to two tiers (5% and 18%), elimination of the 12% and 28% brackets for over 150 goods, a new 0% slab for essentials, AI-enhanced digital compliance, and accelerated exporter refunds. Sitharaman, in her post-meeting press conference, dubbed it “the government’s Diwali dhamaka,” forecasting a 1.5% GDP uplift by FY27. The resolutions, detailed in the Council’s September 5 minutes, draw from the 15th Finance Commission’s 2021 recommendations and a 2024 Deloitte study pinpointing GST’s 10% compliance drag on small traders.
Modi’s 5:00 PM address on September 21, timed for peak viewership (projected 300 million via DD and YouTube), will unpack these jewels, invoking the 2017 rollout’s triumph—merging 17 taxes, boosting 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” mantra, his 20th such address since 2014 a clarion call for fiscal inclusivity.
Pillar 1: Slab Rationalization – Streamlining to a Simpler Duo
The bedrock of GST 2.0 is the slab overhaul, condensing the existing four rates (5%, 12%, 18%, 28%) into two (5% and 18%), with the 12% and 28% brackets axed for 150+ items effective September 22. This consensus-driven move, spearheaded by the Centre and endorsed by states like Kerala and Uttar Pradesh, targets sin goods like tobacco (now 18%) and aerated drinks, while essentials like unpacked grains and sanitary products shift to 0%. Sitharaman’s September 5 briefing underscored: “The 28% slab, taxing just 5% of goods, bred disputes—now, 95% fall under 0-18%, slashing 20% of small traders’ headaches.”
NIPFP’s 2025 modeling projects a 1.5% consumption surge, injecting ₹1.5 lakh crore into GDP by FY26. Consumers benefit: Air conditioners drop from 28% to 18% (₹5,000 savings on ₹30,000 unit), refrigerators similarly (₹4,000 off ₹25,000). Small businesses gain: A Delhi packaged-food vendor saves ₹10,000 quarterly in filings, per FICCI. Challenges: Revenue neutrality—₹50,000 crore shortfall offset by expanding the 18% base through e-commerce oversight.
Modi’s speech will likely hail this as “tax relief for the middle class,” weaving in Viksit Bharat’s inclusive growth narrative.
Pillar 2: Zero-Tax Essentials – A Lifeline for the Common Man
A transformative stroke for low-income households, the new 0% GST slab envelops 100+ daily necessities previously levied at 5-12%, including unpacked rice, millets, fresh produce, sanitary napkins, and life-saving drugs like insulin and chemotherapy agents. Rolled out September 22, this reform—championed by southern states—exempts 40% of FMCG items, as per Sitharaman’s data. The Council, in its September 4 resolution, broadened it from 2024’s 50 items to 150, adding schoolbooks, Ayurvedic remedies, and yoga mats.
Impact: A Bihar rural family saves ₹500 yearly on groceries, per NIPFP; urbanites ₹1,000 on healthcare. Revenue-neutral via luxury surcharges, it echoes Modi’s “zero-tax on life’s basics” from the 2025 Budget. Sitharaman quipped: “It’s a Diwali dhamaka—essentials unshackled from GST’s grip.” Hurdles: Preventing leakage through GSTN’s AI audits, curbing 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 Effortless Filing
GST 2.0’s technological vanguard ushers AI-powered 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-fills invoices via e-invoicing (mandatory for ₹5 crore+ turnover), slashing errors by 30%, per Deloitte’s 2025 study. The Council sanctioned ₹10,000 crore for this, incorporating 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 – Fueling Global Trade
Exporters benefit from refunds in 90 days (from 180) via automated systems, with ₹1.5 lakh crore disbursed in 2024 now speeding 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.