Union Minister Piyush Goyal fired back at Congress leader Jairam Ramesh on Sunday, defending India’s Goods and Services Tax (GST) after Ramesh labeled it a “growth-suppressing tax.” Goyal called GST a smart, citizen-focused reform that powers up businesses and creates a stronger economy—something he says blocks Congress’s focus on family politics and outdated ideas.
In a sharp X post, Goyal recalled the mess before GST rolled out in 2017. “India’s old indirect tax system was a total nightmare,” he wrote. States slapped on their own rates, fees, and rules, leaving businesses buried in stacked-up taxes, mountains of paperwork, and sky-high costs. “Doing business in India felt expensive and draining,” Goyal added, urging Congress to refresh their memory on those tough days.
Goyal gave big credit to Prime Minister Narendra Modi for fixing it all. Under Modi’s watch, India got a unified national market with standard rates and smoother processes—ideas Congress talked about but never delivered, Goyal pointed out. Since then, GST has cracked down on tax evasion, grown the tax base, and pushed more of the economy into the formal sector. It brings in record revenues, gives states more financial muscle, and builds trust for investors and businesses.
Looking ahead, Goyal hyped the next-gen GST reforms kicking off Monday, September 22. These changes go beyond just cutting rates; they spark a cycle of growth. Shoppers will see lower prices, sparking more demand and bigger household savings. Small businesses—MSMEs—will face slimmer input costs, making them tougher competitors at home and abroad. “This is real cooperative federalism in action,” Goyal said, tying it to India’s big dreams for global economic growth.
But Goyal didn’t hold back on Congress. He accused them of rooting against a thriving India because it clashes with their “narrow agenda of dynastic politics and failed economics.”
Earlier that day, Ramesh slammed Modi’s national address on the GST updates. He argued the Prime Minister is wrongly taking all the credit for tweaks approved by the GST Council, a key constitutional group. Ramesh insisted the current GST setup drags down growth with too many tax slabs, harsh rates on everyday items, widespread evasion and errors in classification, steep compliance fees, and a flipped duty structure where inputs cost more to tax than outputs.
“The Indian National Congress has called GST a growth-suppressing tax for years,” Ramesh posted on X. It’s loaded with problems like multiple brackets and burdens on mass-consumption goods. Congress has pushed for a full GST 2.0 overhaul since July 2017 and made it a top promise in their 2024 election manifesto, the Nyay Patra.
Ramesh called the latest reforms too weak. He highlighted urgent fixes needed for MSMEs—the backbone of jobs in India—like raising thresholds for interstate sales and tackling sector-specific headaches.
The whole debate ties back to Prime Minister Modi’s Sunday announcement. He revealed the next-generation GST reforms will launch September 22, the first day of Navratri, as a huge boost for Aatmanirbhar Bharat—India’s self-reliant push. In his speech, Modi promised a nationwide GST Bachat Utsav, or savings festival, that helps everyday folks, the middle class, farmers, traders, and entrepreneurs save money and thrive. “As the sun rises on Navratri, so does this major step toward a self-reliant India,” Modi said.
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