Modi’s GST Reform and Trump’s H-1B Fee: A Dual Shift”
Washington/New Delhi: The United States government’s introduction of a staggering $100,000 one-time fee for new H-1B visa applications, effective September 21, 2025, represents a landmark alteration in the temporary skilled worker visa policy. This move, under President Donald Trump’s proclamation restricting entry of certain non-immigrant workers, aims to safeguard American workers by limiting access to lower-paid foreign labour and incentivising companies to employ highly skilled and better-compensated professionals. US Citizenship and Immigration Services (USCIS) and White House officials have clarified that this unprecedented fee applies exclusively to fresh applications filed for workers currently outside the United States; those holding valid H-1B visas or applying for renewals, extensions, or intra-country employer changes are exempt. Consequently, current visa holders can travel internationally and re-enter without incurring this fee, provided their visa remains valid.
India, as the dominant source nation for H-1B holders—accounting for approximately 71 per cent—finds itself at the epicentre of this policy shift. Indian IT companies such as Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro employ large contingents of H-1B professionals in the US, but have been proactively reducing visa dependency by ramping up local hiring and expanding nearshore and offshore delivery centres. For example, TCS hires over half of its US workforce domestically and has gradually lowered its visa-dependent employees. Nonetheless, industry bodies like Nasscom have raised alarms, cautioning that the fee increase, combined with a one-day compliance window, could disrupt ongoing client projects, unsettle thousands of skilled Indian professionals, and dampen India-US collaborative innovation. The Indian Ministry of External Affairs has also voiced humanitarian concerns over the impact on families and invoked diplomatic channels in response.
Also read: H-1B Visa Overhaul: What Indian Professionals Must Know
Parallelly, India unveiled a transformative economic reform through its next-generation Goods and Services Tax (GST) overhaul, implemented starting September 22, 2025. Prime Minister Narendra Modi’s nationwide address ahead of the rollout today underscored these reforms as a step toward simplifying tax slabs into primarily 5% and 18%, with a 40% cess on luxury goods, aimed at reducing consumer prices and easing compliance burdens. Although Modi’s speech did not overtly address US visa matters, it implicitly conveyed India’s stance on economic resilience and self-sufficiency amid evolving global challenges.
For existing H-1B visa holders, navigating this shifting landscape requires prudence and adaptability. Existing visa holders are advised to avoid international travel during this transitional period to mitigate risks associated with the policy’s enforcement. Maintaining a valid visa status through timely renewals or extensions is critical, as renewals remain exempt from the new fee. Cooperation with immigration attorneys and employer legal teams helps navigate compliance intricacies and explore potential national interest waivers. Financial prudence is essential, with visa holders encouraged to build emergency funds covering at least three to six months of living expenses and diversify investments across tax-advantaged retirement plans, mutual funds, and real estate to strengthen financial resilience. Enhancing skills and career opportunities remains vital amid evolving employment dynamics.
Many H-1B holders consider transitioning to the EB-5 immigrant investor visa program, which provides a pathway to permanent residency. This requires a minimum investment of $800,000 to $1,050,000 in qualifying U.S. projects creating 10 full-time jobs. Funding strategies often include using documented US income, personal savings, home equity lines of credit, proceeds from asset sales in India or abroad, family gifts, or personal loans. Proper documentation of funds is required for USCIS scrutiny.
An extended perspective shows Indian IT firms softening their reliance on H-1B visas by adopting diverse delivery models and local hiring strategies. This evolution insulates firms from visa policy shocks and complements growing automation and artificial intelligence integration within IT service delivery. The visa fee increase may hasten “brain circulation,” encouraging some diaspora professionals to return to India, potentially advancing India’s domestic innovation and investment ecosystems.
Together, these developments unfold against a backdrop of geopolitical and economic rebalancing. Modi’s speech and GST reforms represent confidence in India’s growth, while the Indian government vigorously engages with US counterparts to protect its diaspora amidst tightening immigration controls. For Indian professionals and companies, these intertwined factors necessitate legal, financial, and career vigilance to navigate a complex, transforming international environment.
This synthesised narrative weaves verified updates and multifaceted stakeholder perspectives for a clear, comprehensive understanding of the H-1B visa fee implications and India’s concurrent economic reforms in 2025.
– global bihari bureau
