PM Narendra Modi to address the nation at 5 pm today

Prime Minister Narendra Modi will address the nation at 5 pm on Sunday, September 21 – just a day before GST (Goods and Services Tax) reforms come into effect.

The last time PM Modi addressed the nation was after India and Pakistan reached a “bilateral understanding” following a conflict in May this year. The two countries had engaged in cross-firing after 26 people were killed in the Pahalgam terror attack and India retaliated with Operation Sindoor.

Earlier, the Prime Minister had addressed the nation ahead of the demonitisation, to recall the three controversial farm laws, at a time when the country was grappling with COVID-19 and later, when India and Pakistan reached an understanding during a conflict in May.

Crucial time for India

PM Modi's address comes at a crucial time when India is set to implement GST rate cuts — on the first day of the Navaratri — amid US President Donald Trump's tariff threats and US H-1B visa application fee hike.

With GST reforms coming into effect on September 22, the prices of a large number of products set to come down.

In a bonanza to consumers, GST will now be a two-tier structure wherein majority of goods and services will attract tax of 5 and 18 per cent. A 40 per cent tax will be levied on ultra luxury items while tobacco and related products will continue to be in the 28 per cent plus cess category.

Currently, GST is levied in 4 slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.

Trump tariff and new H-1B visa rules

US President Donald Trump imposed a 25 percent "reciprocal tariff" on India good and later imposed an additional 25 per cent tariff for the purchase of Russian oil, bringing the total duties to 50 per cent.

On September 20, the Trump adiministration announced its decision to hike US H-1B visa application fee to $100,000 – drawing a sharp reaction from India's Ministry of External Affairs.

The H-1B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. Technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

With 71-72% of H-1B visas going to Indians, the move sparked concerns about its effects on Indian tech professionals and remittances.

Following the White House announcement on Saturday, the Indian government advised all its Missions/ Posts to extend all possible help to Indian nationals who are travelling back to the US in the next 24 hours or so.

The government said on Saturday that the full implications of the US decision to impose a $100,000 annual fee on H-1B visa applications are being studied by all concerned, including the Indian industry, and that the measure is likely to have humanitarian consequences by way of the disruption caused for families.

"The Government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program," the statement said.