As reduced GST rates for various items came into effect, the Congress party stated on Monday (September 22, 2025) that this “limited” reform is eight years too late. A significant question mark remains over whether the benefits of these tax reductions will genuinely reach the end consumers.
Jairam Ramesh, Congress general secretary in-charge of communications, highlighted that the National Anti-profiteering Authority (NAA) was initially created under the Central Goods and Services Tax Act, 2017, to ensure that GST rate cuts directly led to lower prices for consumers. However, he claimed that a government notification on September 30, 2024, effectively rendered the NAA “toothless.”
Mr. Ramesh expressed concern, stating, “It should not be a scenario where voters are disregarded on one side, and profiteering flourishes on the other, leaving the public without the benefits of GST reductions.”
He further criticized that the much-needed simplification of procedural complexities has not been addressed in these reforms.
Mr. Ramesh reminded that when GST was first introduced in 2017, Rahul Gandhi and the Congress party had already identified significant issues, famously labeling it the “Gabbar Singh Tax.”
He alleged that the Modi government had previously dismissed these concerns, only to be “forced” to adjust the tax structure now, following tariff impositions by former U.S. President Donald Trump. He accused the government of turning every action into a celebratory event to distract from pressing matters.
Critiquing Prime Minister Narendra Modi, Mr. Ramesh highlighted that Modi, during his tenure as Gujarat Chief Minister, had opposed the UPA government’s GST proposal for eight years, from 2006 to 2014.
Mr. Ramesh reiterated, “We have been advocating for GST regime reforms since 2017. However, the changes implemented, arriving eight years too late, are merely cosmetic. Crucially, the much-needed simplification of procedural complexities has been ignored, and there’s serious doubt whether consumers will actually experience the benefits of these tax reductions.”
He emphasized that these current adjustments do not represent the “GST 2.0” reforms that the Congress has consistently called for, suggesting they are, at best, “GST 1.5.”
On Sunday (September 21, 2025), the Congress accused Mr. Modi of unfairly claiming “sole ownership” over the recent amendments to the GST regime. They asserted that the current reforms are insufficient, leaving critical issues unresolved, such as the states’ demand for a five-year extension of GST compensation.
The Opposition condemned these reforms as merely “applying a band-aid after inflicting deep wounds,” demanding a public apology from the government for imposing GST on essential goods.
Conversely, in his national address on Sunday (September 21, 2025), Mr. Modi announced that a “GST savings festival” would commence with the first day of Navratri. He presented this, combined with income tax exemptions, as a “double bonanza” for the majority of citizens.
Responding to this, Mr. Ramesh criticized Mr. Modi for addressing the nation to “claim sole ownership” of amendments enacted by the GST Council, an independent constitutional body. He reiterated the Indian National Congress’s long-held view that the Goods and Services Tax has acted as a “Growth-Suppressing Tax.”
Ramesh had previously outlined on X that the GST system is burdened by excessive tax brackets, harsh rates on everyday necessities, widespread evasion and misclassification, expensive compliance requirements, and an inverted duty structure where output is taxed lower than inputs.
He stated, “We have been advocating for a comprehensive GST 2.0 since July 2017, a commitment prominently featured in our Nyay Patra for the 2024 Lok Sabha Elections.”
Mr. Ramesh highlighted that the current GST reforms fall short, failing to address critical pending issues, particularly the widespread concerns of Micro, Small, and Medium Enterprises (MSMEs), which are vital for employment generation.
He added that beyond significant procedural overhauls, the reforms should have included increasing the thresholds for interstate supplies.
Mr. Ramesh had also pointed out the necessity to address specific sectoral challenges affecting textiles, tourism, exporters, handicrafts, and agricultural inputs.
The Congress leader further suggested that states should be encouraged to implement state-level GST for sectors like electricity, alcohol, petroleum, and real estate.
Mr. Ramesh noted that a crucial demand from states, articulated in the spirit of cooperative federalism – a five-year extension of GST compensation to safeguard their revenues – remains unfulfilled.
Starting Monday, September 22, coinciding with the first day of Navratri, various goods and services, ranging from everyday kitchen staples and electronics to medicines, equipment, and automobiles, saw price reductions as new GST rates came into effect.
The revamped tax structure introduces a two-tier system, applying 5% and 18% GST to most goods and services, while ultra-luxury items will face a 40% tax. Tobacco and its related products will maintain their 28% plus cess category.
Previously, GST was levied across four slabs: 5%, 12%, 18%, and 28%. Additionally, a compensation cess was applied to luxury and demerit goods.