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Rahul slams GST as 'brutal injustice', calls for major reform

Gandhi also mentioned how the GST has a negative effect on MSMEs, which he said are the biggest employers in the nation.

News Arena Network - New Delhi - UPDATED: July 1, 2025, 04:20 PM - 2 min read

Congress leader and Leader of the Opposition in the Lok Sabha Rahul Gandhi.


Rahul Gandhi, the Congress leader and Leader of the Opposition in the Lok Sabha, launched a vicious attack on the Modi government as the Goods and Services Tax (GST) marked eight years since it was put into effect, referring to the current GST system as a "brutal tool of economic injustice and corporate cronyism." Gandhi made the case in a thorough post on X (formerly Twitter) that the tax system, as it is currently in place under the BJP-led government, has deviated greatly from its original intent and has instead become a burden on the underprivileged, small companies, and states that are not BJP-ruled.


India needs a revised GST that is 'people-first, business-friendly, and truly federal in spirit,' according to Rahul Gandhi. He emphasised the necessity of a tax structure that benefits everyone, not just a chosen few. He stated that "India deserves a tax system that works for everyone — so that every Indian, from the small shopkeeper to the farmer, can be a stakeholder in the nation's growth."


"Eight years on, the Modi government's GST is not a tax reform — it is a brutal tool of economic injustice and corporate cronyism," Gandhi wrote in a critique of the current GST regime. It was intended to punish the impoverished, destroy MSMEs, erode state sovereignty, and enrich a select group of the prime minister's billionaire friends. He emphasised that the GST, which was first billed as a "Good and Simple Tax," has evolved into a convoluted, five-slab system that has undergone more than 900 amendments. He pointed out how ridiculous it is that even things like cream buns and caramel popcorn are subject to its intricate tax system.

 

Also Read: CM Fadnavis slams Rahul Gandhi over voter roll allegations

 

Gandhi claims that while small business owners, MSMEs, and regular traders are ensnared in a bureaucratic maze, the current system disproportionately benefits large corporations who can afford legal and accounting teams to handle its complications. He asserted that these smaller players still experience daily harassment and frustration from the GST portal.


Gandhi also mentioned how the GST has a negative effect on MSMEs, which he said are the biggest employers in the nation. "Since the implementation of the GST eight years ago, more than 18 lakh businesses have closed," he stated. He also took issue with taxes on necessities: "While corporations benefit from over ₹1 lakh crore in tax breaks, citizens now pay GST on everything from tea to health insurance."

 

Also Read: EC replies to Rahul Gandhi over Maharashtra poll claims

 

The Congress leader also criticised the government for keeping petrol and diesel exempt from the GST, saying that this has made things more difficult for the public, farmers, and transportation companies. He also claimed that the central government has punished states led by non-BJP parties by using GST dues as a political tool, calling this "clear proof of the Modi government's anti-federal agenda."


Gandhi emphasised the original purpose of the GST, stating that it was a bold concept implemented under the UPA administration with the aim of simplifying the tax system and bringing India's markets together. But this vision has been "betrayed by poor implementation, political bias, and bureaucratic overreach," he bemoaned.

 

Gandhi reiterated the need for change and came to the conclusion that the nation needs a revised GST that genuinely embodies the values of economic justice, equity, and cooperative federalism — one that puts the needs of small businesses and regular people first rather than focussing primarily on serving the interests of large corporations.

 

Also Read: Rahul Gandhi calls Puri stampede a warning for large events

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