With reduced GST rates connected respective items coming into effect, the Congress connected Monday (September 22, 2025) said the "limited" betterment comes 8 years excessively precocious and a "big question mark" remains connected whether the benefits of taxation simplification volition beryllium passed connected to consumers.
Congress wide caput in-charge of communications, Jairam Ramesh, said the National Anti-profiteering Authority (NAA) was established nether Section 171 of the Central Goods and Services Tax Act, 2017, to show whether GST complaint cuts resulted successful the simplification of user prices but was rendered "toothless" by the Narendra Modi authorities with a notification issued of September 30, 2024.
"It should not beryllium a lawsuit of 'vote chori' connected 1 manus and 'munafakhori (profiteering)' connected the different manus with the radical not getting the benefits of the GST reduction," Mr. Ramesh told PTI.
He besides claimed that "procedural complexities" person not been eased successful the reforms contempt the information that it was overmuch needed.
Mr. Ramesh pointed retired that astatine the precise motorboat of GST successful 2017, Rahul Gandhi and the Congress had pointed retired the problems and asserted that what was brought successful was the "Gabbar Singh Tax".
"The Modi authorities mocked him and the Congress, ignored the concerns, and brought astir nary changes. Now that U.S. President Donald Trump has imposed tariffs, they person been forced to amended the taxation structure, and are celebrating it similar a festival. This authorities makes an lawsuit of everything arsenic their absorption is connected diverting attraction from existent issues," helium told PTI.
Taking a swipe astatine Prime Minister Narendra Modi, Mr. Ramesh said that erstwhile helium was the Gujarat Chief Minister, helium opposed the GST connection of the past UPA for 8 years from 2006 to 2014.
"We person been demanding betterment of the GST authorities since 2017, but the betterment that has been carried retired 8 years excessively precocious is limited. The procedural complexities person not been eased, which was overmuch needed. There is besides a large question people connected whether the benefits of taxation simplification volition beryllium passed connected to the consumers oregon not," Mr. Ramesh said.
He asserted that this betterment is not a "GST 2.0" that the Congress has been demanding, but astatine champion tin beryllium termed "GST 1.5".
The Congress connected Sunday (September 21, 2025) accused Mr. Modi of taking "sole ownership" of the amendments made to the GST authorities and said the existent reforms were inadequate, with outstanding issues, including states' request for an hold of compensation for different 5 years, remaining unaddressed.
The Opposition enactment slammed the reforms arsenic "applying a band-aid aft inflicting heavy wounds" and said the authorities should apologise to the nationalist for its GST connected indispensable items.
In his code to the federation connected Sunday (September 21, 2025), Mr. Modi said a "GST bachat utsav (savings festival)" volition statesman from the archetypal time of Navratri, and coupled with the income taxation exemption, it volition beryllium a "double bonanza" for astir people.
Responding to the address, Mr. Ramesh had said Mr. Modi addressed the federation to "claim sole ownership of the amendments made to the GST authorities by the GST Council, a law body." The Indian National Congress has agelong argued that the Goods and Services Tax has been a "Growth-Suppressing Tax", helium had said connected Sunday.
"It is plagued with a precocious fig of taxation brackets, punitive taxation rates for items of wide consumption, large-scale evasion and misclassification, costly compliance burdens, and an inverted work operation (lower taxation connected output arsenic compared to inputs)," Ramesh had said successful a station connected X.
"We person been demanding a GST 2.0 since July 2017 itself. This was a cardinal pledge made successful our Nyay Patra for the 2024 Lok Sabha Elections," helium said.
Mr. Ramesh said the existent GST reforms were inadequate, with outstanding issues, including the wide concerns of MSMEs, who are the large employment generators successful the economy.
"Apart from large procedural changes, this involves further expanding the thresholds that use to interstate supplies," helium had said.
Mr. Ramesh had claimed that determination were besides sectoral issues, for instance, successful textiles, tourism, exporters, handicrafts and cultivation inputs that indispensable beryllium tackled.
States should beryllium incentivised to determination towards the instauration of state-level GST to screen electricity, alcohol, petroleum and existent property arsenic well, the Congress person said.
"The cardinal request of the states made successful the existent tone of cooperative federalism, namely, the hold of compensation for different 5 years to afloat support their revenues, remains unaddressed," Mr. Ramesh had said.
From room staples to electronics, from medicines and instrumentality to automobiles, goods and services became cheaper from Monday arsenic the reduced GST rates connected respective items came into effect from September 22 — the archetypal time of the Navaratri.
The taxation authorities present assumes a two-tier structure, with the bulk of goods and services attracting taxation of 5 and 18%, and ultra luxury items being levied a 40% tax. Tobacco and related products volition proceed to beryllium successful the 28% positive cess category.
Till now, the GST was levied successful 4 slabs of 5, 12, 18 and 28%. Besides, a compensation cess is levied connected luxury items and demerit oregon misdeed goods.
