The Congress party has launched a strong critique of the government’s latest Goods and Services Tax reforms, branding GST as a “Growth-Suppressing Tax” and arguing that the recently announced changes fail to resolve the deep-rooted structural flaws that have persisted since its implementation in 2017. The criticism was issued shortly after Prime Minister Narendra Modi unveiled the new phase of GST reforms and declared the start of a “GST Bachat Utsav,” presenting it as a measure that would ease the burden on consumers, traders, and states alike.
Senior Congress leaders, including party president Mallikarjun Kharge and Jairam Ramesh, pointed out that GST continues to be plagued by inefficiencies. Kharge recalled that instead of the streamlined system originally envisioned by Congress, the BJP government introduced what he termed the “Gabbar Singh Tax,” with nine separate slabs, leading to a complex and burdensome structure. He further alleged that the government has collected over Rs 55 lakh crore through GST in just eight years, yet ordinary citizens and small businesses continue to suffer under its weight.
Jairam Ramesh echoed these concerns, highlighting that essential goods such as food, school supplies, and medical services remain subject to heavy taxation, as do tractors and other vital inputs for farmers. He also flagged unresolved sectoral challenges in industries such as textiles, handicrafts, tourism, and exports, while noting that small and medium-sized enterprises—critical to job creation—are still struggling with compliance hurdles and threshold barriers. In his view, the new amendments fail to address more pressing demands, including extending state compensation for another five years, offering incentives for states to bring petroleum, electricity, alcohol, and real estate into the GST fold, and resolving the inverted duty structure that discourages domestic manufacturing.
Ramesh further questioned whether the reforms, delayed by eight years, would genuinely encourage private investment. He pointed to the widening trade deficit with China, which has doubled to over USD 100 billion in just five years, as well as a growing trend of Indian businesses relocating overseas due to what he described as fear-driven policies and the rise of monopolistic practices.
Adding to the chorus of criticism, senior leader Randeep Singh Surjewala shifted the focus toward youth employment and India’s IT sector. He noted that the recent hike in H-1B visa fees in the United States poses serious challenges for young Indian professionals, yet the Prime Minister has chosen to remain silent on the issue, leaving one of India’s most dynamic talent pools vulnerable.
Congress reiterated that it has consistently called for a comprehensive GST 2.0 since 2017, arguing that cosmetic tweaks, such as those under the “GST Bachat Utsav,” are insufficient to safeguard consumer interests, promote fair competition, or ensure states’ equitable participation in the national growth story. The party stressed that unless the larger structural issues are addressed, the reforms will remain inadequate and fail to deliver the promised relief.
In contrast, Prime Minister Modi presented the reforms as a transformative step for India’s economy, particularly for the poor, middle class, MSMEs, and traders. He insisted that the changes would simplify the tax system, promote ease of doing business, attract fresh investment, and guarantee equal partnership for all states in India’s growth journey. Framing the launch as a symbolic step on the first day of Navratri, he described it as part of India’s ongoing march toward an “Atmanirbhar Bharat,” or self-reliant India.
