PM's 8-year 'landmark' journey of GST meets Rahul Gandhi's 'economic injustice' cry

India Today

11 hours ago

As the Goods and Services Tax (GST) completed eight years of its implementation, Prime Minister Narendra Modi on Monday praised it as a landmark reform that has reshaped India's economic landscape. However, his statement drew sharp criticism from Congress MP Rahul Gandhi, who called GST a tool of "economic injustice" that has punished the poor and benefited a few corporates.In a post on X, Prime Minister Modi said, "Eight years since it was introduced, GST stands out as a landmark reform that has reshaped India's economic landscape. By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises. GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India's market."advertisementHe said the tax reform had not only simplified processes but also promoted the spirit of cooperative federalism, with states becoming equal partners in building a unified national market.
Congress MP Rahul Gandhi, however, launched a blistering attack on the Modi government over its implementation of the GST. Responding to the Prime Minister's remarks, Gandhi wrote: "8 years on, the Modi government's GST is not a tax reform - it's a brutal tool of economic injustice and corporate cronyism. It was designed to punish the poor, crush MSMEs, undermine states, and benefit a few billionaire friends of the Prime Minister."Gandhi alleged that instead of the promised "Good and Simple Tax", what India got was a "compliance nightmare" riddled with a five-slab tax regime that has undergone over 900 amendments.He criticised the system for being confusing and bureaucratic, claiming that items like caramel popcorn and cream buns had been caught in its "web of confusion".advertisementHe further said the GST framework favoured large corporations with resources to manage its complexities, while small traders, shopkeepers and MSMEs struggled to cope. "The GST portal remains a source of daily harassment," he said.Gandhi claimed that over 18 lakh enterprises have shut down since GST was rolled out, and accused the government of weaponising GST dues to target non-BJP-ruled states."Petrol and diesel have been deliberately kept outside the GST framework, hurting farmers, transporters, and ordinary people," he added.He asserted that the GST, originally envisioned by the UPA to unify India's markets and simplify taxation, had been "betrayed by poor implementation, political bias, and bureaucratic overreach". Calling for reform, Gandhi said, "India deserves a tax system that works for all, not just the privileged few, so that every Indian, from the small shopkeeper to the farmer, can be a stakeholder in our nation's progress."WHAT IS GST?The Goods and Services Tax (GST), introduced on July 1, 2017, under the stewardship of then-Finance Minister Arun Jaitley, replaced a convoluted system of indirect taxes, including VAT, excise duty, and service tax-with a single, streamlined tax applicable on the supply of goods and services across India.Conceived as a transformative reform, GST aimed to simplify tax compliance, eliminate the cascading effect of multiple levies, and boost the ease of doing business. By integrating various central and state taxes into a unified framework, it sought to create a common national market and enhance economic efficiency.advertisementThe idea of a nationwide GST was first proposed in 2000 during the Atal Bihari Vajpayee-led government. However, the proposal was bogged down by bureaucratic and political complexities and was eventually pushed to the sidelines.The concept regained momentum after the Bharatiya Janata Party, led by Prime Minister Narendra Modi, assumed office in 2014. Intensive consultations with states, renewed legislative efforts, and sustained political will culminated in the passage of the Constitution (122nd Amendment) Bill in 2016.Following ratification by a majority of states and the enactment of four key supporting legislations in 2017, GST was formally rolled out, marking one of the most ambitious overhauls of India's tax regime.- EndsMust Watch