Major GST Reforms Approved by Council
In a significant overhaul of India's indirect tax structure, the Goods and Services Tax (GST) Council, following its 56th meeting, has approved a simplified two-tier tax system of 5% and 18% for most goods and services, effective September 22, 2025. Union Finance Minister Nirmala Sitharaman announced that the 12% and 28% slabs will be abolished. A new 40% slab has been introduced specifically for sin and luxury goods.
The changes aim for structural reform and are expected to make several common-use items cheaper. For instance, GST on 33 life-saving drugs has been reduced from 12% to zero, and agricultural goods like tractors and specific bio-pesticides will see a reduction from 12% to 5%. Footwear costing less than Rs 2500 will now be taxed at 5%, while those above Rs 2500 will attract 18%. Small cars will be charged 18%, with other cars at 40%. Additionally, a 40% GST rate will apply to specified actionable claims including betting, casinos, gambling, horse racing, lottery, and online money gaming.
Northern States Grapple with Severe Floods
Heavy monsoon rains continue to wreak havoc across northern India, leading to dozens of fatalities and widespread damage. States like Himachal Pradesh, Punjab, and Jammu & Kashmir have been particularly affected. In Himachal Pradesh, 11 people died in the past 24 hours due to rain-triggered landslides. Punjab has declared all 23 districts flood-hit, reporting 30 deaths and impacting over 3.5 lakh people, with rivers like Sutlej, Beas, and Ravi flowing above danger marks. The India Meteorological Department (IMD) has issued red alerts for multiple states, indicating risks of floods and landslides.
India Advances in Semiconductor Mission at Semicon India 2025
Prime Minister Narendra Modi engaged with leading CEOs from the semiconductor industry at Semicon India 2025, reiterating India's commitment to becoming a global hub for semiconductor innovation and manufacturing. During the event, India unveiled its first indigenously developed semiconductor, the 'Vikram 32-bit processor,' marking a significant step towards self-reliance in the sector. PM Modi emphasized India's ongoing reform journey, focusing on robust infrastructure, skill development, and fostering innovation to attract major investments and build strong supply chains.
Supreme Court Hears Arguments on Governor's Powers; CAA Update
The Supreme Court continued its hearing on a Presidential Reference concerning the discretionary powers of Governors in withholding bills. Several Opposition-ruled states argued against these powers, asserting that lawmaking is solely the legislature's domain, with no role for Governors in delaying legislation. This hearing addresses whether courts can impose timelines for Governors and the President to act on bills passed by state assemblies.
In a separate development, Assam Chief Minister Himanta Biswa Sarma clarified that only three individuals have received Indian citizenship under the Citizenship Amendment Act (CAA) in Assam, against 12 applications. He dismissed concerns about a large influx of foreigners gaining citizenship through the CAA, citing the low number of applications.
India's Standing in Global Peace Index 2025
According to the Global Peace Index (GPI) 2025, India has shown a modest improvement in its peace score, ranking 115th out of 163 nations. Iceland maintained its position as the most peaceful country globally. The report highlights factors such as a gradual decline in domestic violence and disputes, and better societal stability, as contributors to India's improved ranking, while noting challenges like high militarization, cross-border tensions, and sporadic internal unrest.