Govt Looking For Earliest Possible Rollout Of GST 2.0; MIG-21 De-Induction; And More

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Why India May Get New GST Regime In September Itself

Multiple business channels reported 25 August that the Central government is pushing to rollout the simplified and rationalised GST structure at the earliest possible. Prime Minister Narendra Modi had previously given a timeline of Deepavali for the GST reform in his Independence Day speech. Deepavali this year falls around 21-22 October. 

However, reports indicated the government thinking that the Deepavali timeline may be too late since consumers may postpone their purchases till then in anticipation of lower GST rates and the market would miss the entire festive season across September and October. In that case, the GST reform would have the opposite effect than the one intended. 

To avoid that, and to give a boost to the market before the festive season kicks in in full measure, the government is looking to rollout the simplified GST structure soon after the GST Council meeting of 3-4 September. The Council is largely expected to ratify the rationalised GST structure. The Group of Ministers (GoM) of the council has already approved the GST rate cuts. 

An early rollout of GST 2.0 thus depends on two things:

1. The decision of the GST Council 

2. If the Council agrees on the amendments, how soon can the government notify them 

Indian Air Force Bids Farewell to MiG-21 Fighter After Six Decades

The Indian Air Force is preparing to retire its MiG-21 Bison aircraft in a ceremonial de-induction scheduled for Chandigarh in the coming weeks, marking the end of over six decades of service.

Chief of Air Staff A.P. Singh flew the supersonic fighter in what appeared to be a symbolic final sortie at Nal air base in Rajasthan, 25 August, accompanied by formation flights with Squadron Leader Priya Sharma. The retirement ceremony will be hosted a month later by No. 28 Squadron, known as the "First Supersonics," which originally introduced the aircraft to Indian skies in 1963.

The MiG-21 served as the backbone of India's fighter fleet far longer than similar aircraft worldwide. For multiple generations of pilots, it functioned as both trainer and combat aircraft. The aircraft participated in multiple conflicts and border patrol missions throughout its service life. Controversially though, it was also known as the “flying coffin” due to the number of crashes the aircraft type suffered. 

As the MiG-21 era concludes, India's air force is transitioning to modern platforms including the indigenous Tejas fighter, French Rafales, and upgraded Su-30MKI, Mirage-2000, and Jaguar fleets. 

Other developments

Trump Warns He Could "Destroy China" While Promising Great Relations

U.S. President Donald Trump said 25 August that the United States and China will have a "great relationship" while warning he possesses "incredible cards" that could "destroy China" if deployed.

Speaking before meeting South Korean President Lee Jae Myung, Trump suggested Washington holds superior leverage in ongoing trade disputes. "They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China," he told reporters, without specifying what these capabilities entailed.

Trump confirmed recent conversations with Chinese President Xi Jinping and indicated a possible visit to China "probably during this year or shortly thereafter" following Xi's invitation last month.

The remarks come as both nations extended their trade truce through August, with the US maintaining 30 per cent tariffs on most Chinese imports while China applies 10 per cent tariffs on American products. Trump specifically threatened 200 per cent tariffs if China restricts rare earth magnet supplies, referencing Beijing's tightened export controls implemented in April.

U.S. Treasury Secretary Scott Bessent has also identified China's oil imports from Iran and Russia as additional negotiation points. 

RBI Ready to Act if US Tariffs Impact Growth, Says Governor Malhotra

Reserve Bank of India Governor Sanjay Malhotra signaled Monday that the central bank could implement policy measures if 50 per cent US tariffs taking effect Wednesday hurt domestic economic growth.

Speaking at the Ficci-IBA banking conclave, Malhotra said the RBI has provided "ample liquidity" and would not be "found wanting" if additional support is needed for affected sectors.

The US recently imposed 25 per cent reciprocal tariffs on Indian goods, with another 25 percent penalty levy for India's Russian crude purchases. 

While overall tariff impact would be minimal, Malhotra warned certain sectors including gems, textiles, and MSMEs could face pressure.

The RBI cut repo rates by 100 basis points between February-June, leaving rates at 5.5 per cent in August. The central bank lowered FY26 GDP growth projection though to 6.5 per cent.

Supreme Court Stays FIRs Against CSDS Psephologist Who Posted Incorrect Maharashtra Voter Data

The Supreme Court Monday stayed FIRs filed against psephologist Sanjay Kumar after he apologised for sharing incorrect voter data regarding Maharashtra elections.

Chief Justice BR Gavai and Justice NV Anjaria heard Kumar's plea, with his counsel emphasizing his "impeccable integrity" and 30 years of respected service. The counsel noted Kumar had admitted his mistake and apologised publicly.

Kumar, associated with the Centre for the Study of Developing Societies (CSDS), had posted on X claiming extraordinary increase and decrease of voter numbers in respective constituencies of Maharashtra between the Lok Sabha and Assembly elections.

Congress leaders used his posts to allege BJP-Election Commission voter fraud. Kumar later deleted the posts, apologizing for errors in comparing 2024 Lok Sabha and Assembly data, stating his team "misread" information.

Maharashtra police had registered FIRs in Nagpur and Nashik against Kumar under sections related to false information and election violations.

From the states

Freebie Rationalisation? Maharashtra Flags 26 Lakh Ineligible Beneficiaries Under Women's Cash Scheme

Maharashtra's Women and Child Development Minister Aditi Tatkare announced Monday that nearly 26 lakh ineligible beneficiaries have been identified under the Mukhyamantri Majhi Ladki Bahin scheme.

The IT Department's preliminary data revealed these women received benefits without meeting eligibility criteria. The ministry has forwarded the list to district authorities for physical verification.

Launched in July 2024, the scheme provides Rs 1,500 monthly to women aged 21-65 with annual income below Rs 2.5 lakh, excluding those benefiting from other government programmes. The scheme was said to be one of the reasons behind the incumbent Mahayuti's mammoth victory in the Assembly election of 2024.

Officials discovered multiple irregularities: families with more than two women claiming benefits, recipients drawing from multiple schemes, and even men applying for assistance.

Tatkare assured genuine beneficiaries would continue receiving support without interruption. She noted though that some cases might involve women using male family members' bank accounts due to lack of personal accounts.

BJP Protests Karnataka Government's Invitation to Controversial Author To Inaugurate Mysuru Dasara Festival

Karnataka Chief Minister Siddaramaiah's decision to invite Booker Prize-winning author Banu Mushtaq to inaugurate Mysuru Dasara celebrations on September 22 has sparked a political controversy.

BJP leader Pratap Simha questioned why a Muslim was chosen for a Hindu religious festival, asking if Mushtaq believes in Goddess Chamundeshwari or follows Hindu rituals. State BJP chief BY Vijayendra also questioned why Mushtaq's co-winner Deepa Bhasthi wasn't invited instead.

Mysuru MP Yaduveer Wadiyar, while acknowledging Mushtaq's literary contributions, raised concerns about her 2023 remarks regarding Hindu traditions, urging her to clarify her reverence toward Goddess Chamundeshwari before accepting.

The 77-year-old Hassan-based author won the Booker Prize for her anthology "Hrudaya Deepa," featuring stories about Muslim women's struggles.

Mushtaq declined to comment on the criticism, while confirming her attendance.

Heavy Rains Disrupt Life in Hill States, Trigger Floods in Punjab

Continuous rainfall in hill states has severely affected daily life, with water from Himachal Pradesh and Jammu-Kashmir rivers causing floods in several Punjab districts.

In Himachal Pradesh, three Punjab pilgrims died from oxygen deficiency during the Manimahesh Yatra, which authorities have now suspended. Around 800 devotees remain stranded between Hadsar and Dal. Schools in Chamba, Kangra, Mandi and Una districts remain closed Tuesday following heavy rain warnings.

Jammu-Kashmir has issued red alerts for eight Jammu division districts and alerts for three Kashmir districts through Wednesday, warning of cloudbursts, floods and landslides. All government and private schools in Jammu division are closed Tuesday.

Uttarakhand has suspended Gangotri and Yamunotri pilgrimages due to damaged highways, while Badrinath and Kedarnath routes face frequent landslide disruptions. Over 90 connecting roads are blocked.

For the first time since 2007, all seven flood gates of Ranjit Sagar Dam in Pathankot have been opened, causing Ravi river flooding in nearby villages and affecting Gurdaspur, Tarn Taran, Kapurthala, Firozpur and Fazilka districts.

You’re all caught up. Until next time.