Congress Slams Modi Govt's GST Cuts: ‘Too Late, Too Little’ with Big Doubts on Consumer Benefits

Congress Slams Modi Govt's GST Cuts: ‘Too Late, Too Little’ with Big Doubts on Consumer Benefits

September 22, 2025

Hold on tight, India! The government slashed GST rates on many goods starting September 22, 2025 — just in time for Navratri. But the Congress party isn’t dancing in joy. Instead, it’s firing shots, calling these changes a “limited reform” that came eight whole years too late. Congress general secretary Jairam Ramesh told PTI that even though the GST cut sounds nice, there’s a big question: will consumers actually feel these benefits? Mr. Ramesh pointed out a critical watchdog called the National Anti-profiteering Authority (NAA), which was set up to make sure traders pass on tax cuts to buyers. But guess what? The Narendra Modi government made the NAA powerless with a 2024 notification. "It should not be a case of 'vote chori' on one hand and 'munafakhori (profiteering)' on the other," he warned. And it’s not just about prices. He lambasted the government for ignoring the need to simplify tax rules, calling the reforms a half-hearted job. "Procedural complexities have not been eased, which was much needed," he said. Interestingly, Jairam reminded us that when GST first launched in 2017, Rahul Gandhi had warned it was a "Gabbar Singh Tax" — a tough, unfair system. But the Modi team laughed off those concerns. Adding fuel to the fire, Ramesh said PM Modi himself opposed GST for eight years before becoming PM! Now, after U.S. tariffs shake the tax scene, the government is forced to fix things, and it’s making a grand show of the ‘improvements’. Congress calls this small step “GST 1.5,” not the full “GST 2.0” overhaul they’ve been demanding since 2017. They slammed Modi for taking “sole ownership” of these changes, ignoring states’ requests for compensation extension and MSME concerns. “Applying a band-aid after inflicting deep wounds,” they said, urging the government to apologize for taxing essentials unfairly. So what changed? From cheap kitchen staples to electronics and medicines, tax rates have dropped. The old four-tier GST system (5%, 12%, 18%, 28%) is now mostly two-tier: 5% and 18% on most goods, 40% on ultra-luxury, with tobacco still taxed heavily. Will the savings festival announced by Modi truly double the joy for Indian wallets? Or is this just another political celebration hiding unresolved issues? Congress surely thinks it’s the latter. Time will tell if shoppers get a sweet deal or merely a sugar-coated promise!

Read More at Thehindu

Tags: Gst reform, Congress criticism, Jairam ramesh, Tax reduction, Modi government, Economic policies,

Qiana Michaud

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