With minimized GST rates on a number of products entering into impact, the Congress on Monday(September 22, 2025 )stated the “limited” reform comes 8 years far too late and a “big question mark” stays on whether the advantages of tax decrease will be handed down to customers.
Congress basic secretary in-charge of interactions, Jairam Ramesh, stated the National Anti-profiteering Authority (NAA) was developed under Section 171 of the Central Goods and Services Tax Act, 2017, to keep track of whether GST rate cuts led to the decrease of customer rates however was rendered “toothless” by the Narendra Modi federal government with a notice provided of September 30, 2024.
“It should not be a case of ‘vote chori’ on one hand and ‘munafakhori (profiteering)’ on the other hand with the people not getting the benefits of the GST reduction,” Mr. Ramesh informed PTI
GST reforms LIVE
He likewise declared that “procedural complexities” have actually not been relieved in the reforms in spite of the truth that it was much required.
Mr. Ramesh explained that at the really launch of GST in 2017, Rahul Gandhi and the Congress had actually explained the issues and asserted that what was generated was the “Gabbar Singh Tax”
“The Modi government mocked him and the Congress, ignored the concerns, and brought about no changes. Now that U.S. President Donald Trump has imposed tariffs, they have been forced to improve the tax structure, and are celebrating it like a festival. This government makes an event of everything as their focus is on diverting attention from real issues,” he informed PTI
Taking a swipe at Prime Minister Narendra Modi, Mr. Ramesh stated that when he was the Gujarat Chief Minister, he opposed the GST proposition of the then UPA for 8 years from 2006 to 2014.
“We have been demanding reform of the GST regime since 2017, but the reform that has been carried out eight years too late is limited. The procedural complexities have not been eased, which was much needed. There is also a big question mark on whether the benefits of tax reduction will be passed on to the consumers or not,” Mr. Ramesh stated.
He asserted that this reform is not a “GST 2.0” that the Congress has actually been requiring, however at finest can be described “GST 1.5”
The Congress on Sunday (September 21, 2025) implicated Mr. Modi of taking “sole ownership” of the modifications made to the GST program and stated the present reforms were insufficient, with impressive concerns, consisting of states’ need for an extension of settlement for another 5 years, staying unaddressed.
The Opposition celebration knocked the reforms as “applying a band-aid after inflicting deep wounds” and stated the federal government ought to apologise to the general public for its GST on vital products.
In his address to the country on Sunday (September 21, 2025), Mr. Modi stated a “GST bachat utsav (savings festival)” will start from the very first day of Navratri, and paired with the earnings tax exemption, it will be a “double bonanza” for many people.
Reacting to the address, Mr. Ramesh had actually stated Mr. Modi attended to the country to “claim sole ownership of the amendments made to the GST regime by the GST Council, a constitutional body.” The Indian National Congress has actually long argued that the Goods and Services Tax has actually been a “Growth-Suppressing Tax”he had actually stated on Sunday.
“It is plagued with a high number of tax brackets, punitive tax rates for items of mass consumption, large-scale evasion and misclassification, costly compliance burdens, and an inverted duty structure (lower tax on output as compared to inputs),” Ramesh had actually stated in a post on X.
“We have been demanding a GST 2.0 since July 2017 itself. This was a key pledge made in our Nyay Patra for the 2024 Lok Sabha Elections,” he stated.
Mr. Ramesh stated the existing GST reforms were insufficient, with impressive problems, consisting of the extensive issues of MSMEs, who are the significant work generators in the economy.
“Apart from major procedural changes, this involves further increasing the thresholds that apply to interstate supplies,” he had actually stated.
Mr. Ramesh had actually declared that there were likewise sectoral problems, for example, in fabrics, tourist, exporters, handicrafts and farming inputs that need to be taken on.
States must be incentivised to move towards the intro of state-level GST to cover electrical power, alcohol, petroleum and property too, the Congress leader stated.
“The key demand of the states made in the true spirit of cooperative federalism, namely, the extension of compensation for another five years to fully protect their revenues, remains unaddressed,” Mr. Ramesh had actually stated.
From cooking area staples to electronic devices, from medications and devices to autos, products and services ended up being less expensive from Monday as the minimized GST rates on a number of products entered into impact from September 22– the very first day of the Navaratri.
The tax program now presumes a two-tier structure, with most of items and services bring in tax of 5 and 18%, and ultra high-end products being imposed a 40% tax. Tobacco and associated items will continue to remain in the 28% plus cess classification.
Till now, the GST was imposed in 4 pieces of 5, 12, 18 and 28%. A settlement cess is imposed on high-end products and demerit or sin products.