Congress on Monday dismissed the Modi government’s recent reduction in Goods and Services Tax (GST) rates as too little, too late, warning that consumers may never see the promised relief.
Congress general secretary in-charge of communications, Jairam Ramesh, stated that while rates have been lowered on several items, the reforms “come eight years too late” and fail to address systemic flaws in the tax regime.
Ramesh questioned whether the cuts would reach the public. “It should not be a case of ‘vote chori’ on one hand and ‘munafakhori (profiteering)’ on the other hand with the people not getting the benefits of the GST reduction,” he said.
The Congress leader argued that the National Anti-profiteering Authority, created under Section 171 of the Central GST Act to monitor whether price cuts reached consumers, had been “rendered toothless” by the government through a notification issued on September 30, 2024.
He said that the reforms failed to simplify procedures despite repeated demands. “We have been demanding reform of the GST regime since 2017, but the reform that has been carried out eight years too late is limited. The procedural complexities have not been eased, which was much needed,” Ramesh added.
The opposition maintains that this is not the “GST 2.0” it has long demanded. “At best,” Ramesh remarked, “it can be termed GST 1.5.”
Congress also accused the Prime Minister of claiming “sole ownership” of changes recommended by the GST Council, describing the government’s announcement of a “GST bachat utsav (savings festival)” as an exercise in event management rather than genuine reform.
Ramesh reminded that Rahul Gandhi had branded the original tax rollout in 2017 as the “Gabbar Singh Tax”, citing its complicated structure, multiple slabs and harsh compliance burdens. “The Modi government mocked him and the Congress, ignored the concerns, and brought about no changes. Now that US President Donald Trump has imposed tariffs, they have been forced to improve the tax structure, and are celebrating it like a festival,” he stated.
Also read: New GST rates in effect: PM's ‘Bachat Utsav’ begins
He also targeted Modi’s earlier record, noting that he had opposed the UPA’s GST proposal during his tenure as Gujarat chief minister between 2006 and 2014.
According to Ramesh, key concerns of states and micro, small and medium enterprises remain unresolved. He said the government had failed to extend the compensation mechanism sought by states, neglected sectors such as textiles, tourism, and handicrafts, and ignored demands for broader state-level GST coverage on items like petroleum, alcohol, and electricity.
The Congress leader reiterated that the Indian National Congress, in its 2024 Lok Sabha election manifesto, had pledged a comprehensive “GST 2.0” aimed at reducing tax brackets, addressing the inverted duty structure, and easing compliance for small businesses.
Meanwhile, with the reduced GST rates taking effect from September 22, the tax structure has been recast into two slabs of 5 and 18 per cent, with luxury goods taxed at 40 per cent and tobacco products continuing under the 28 per cent plus cess regime. The government has touted the change as a “double bonanza” when combined with recent income tax exemptions.
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