New Delhi, Sep 21 Hours after Prime Minister Narendra Modi’s address to the nation on Sunday evening announcing major reforms in the Goods and Services Tax (GST) regime, the Congress hit back sharply, terming the changes “inadequate” and accusing the Prime Minister of claiming sole credit for a decision taken by the GST Council — a constitutional body.
Congress General Secretary in charge of Communications, Jairam Ramesh, in a post on X, said, “The Prime Minister addressed the nation today to claim sole ownership of the amendments made to the GST regime by the GST Council, a constitutional body.”
Ramesh reiterated that the Congress has long described GST as a “Growth Suppressing Tax” plagued with “multiple tax brackets, punitive rates on mass consumption items, widespread evasion, costly compliance, and an inverted duty structure.”
He added that the party had been demanding a “GST 2.0” since July 2017, a pledge reiterated in its 2024 Lok Sabha election manifesto, the Nyay Patra.
Listing the shortcomings of the reforms, Ramesh said that MSMEs, the backbone of India’s employment generation, continue to face procedural hurdles, and thresholds for interstate supplies need further revision.
He flagged unresolved sectoral issues in “textiles, tourism, handicrafts, exports, and agriculture inputs”, and demanded that states be incentivised to bring electricity, petroleum, alcohol, and real estate under the GST ambit.
He further criticised the government for failing to extend the GST compensation period for another five years, a longstanding demand of the states, “in the true spirit of cooperative federalism.”
“Whether this round of GST changes--delayed by 8 years--will actually boost the private investment that is essential for higher GDP growth remains to be seen,” Ramesh said.
“Meanwhile, the trade deficit with China has doubled in the last five years to cross $100 billion. And Indian business is crippled by fear and oligopolisation that is leading many to resettle abroad,” he added.
The Congress leader’s remarks came shortly after PM Modi’s call for celebrating a “GST Bachhat Utsav” during Navratri, pitching the reforms as a major relief to consumers and a step towards economic growth.
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