Just hours after Prime Minister Narendra Modi addressed the nation on Sunday evening to unveil major Goods and Services Tax (GST) reforms, the Congress party fired back with strong criticism. They called the changes “inadequate” and accused Modi of taking all the credit for decisions made by the GST Council, a key constitutional body.
Congress General Secretary Jairam Ramesh shared his thoughts on X, slamming the Prime Minister for claiming “sole ownership” of the GST regime amendments. Ramesh has long labeled GST a “Growth Suppressing Tax,” pointing to problems like multiple tax slabs, high rates on everyday essentials, rampant evasion, expensive compliance rules, and a flawed inverted duty setup that hurts businesses.
The Congress has pushed for a full “GST 2.0” overhaul since July 2017, a promise they renewed in their 2024 Lok Sabha election manifesto, the Nyay Patra. Ramesh highlighted ongoing issues with the latest reforms, noting that micro, small, and medium enterprises (MSMEs)—India’s job creation engine—still struggle with red tape. He also called for higher thresholds on interstate supplies to ease the burden.
Ramesh flagged unresolved challenges in key sectors like textiles, tourism, handicrafts, exports, and agriculture inputs. He urged the government to incentivize states to fold electricity, petroleum, alcohol, and real estate into the GST net, expanding its reach. Plus, he criticized the lack of a five-year extension on GST compensation for states, saying it ignores the principles of cooperative federalism.
“Will these GST changes—delayed by eight years—really spark the private investment India needs for stronger GDP growth? That’s the big question,” Ramesh said. He tied it to broader economic woes, like India’s trade deficit with China doubling to over $100 billion in the past five years. Indian businesses, he added, face fear and market dominance by a few players, pushing many to relocate abroad.
These remarks came right after Modi’s speech, where he rallied people to celebrate a “GST Bachhat Utsav” during Navratri. He pitched the reforms as a big win for consumers and a boost to India’s economic growth.
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