LoP Gandhi slams GST, demands people-centric tax reforms

New Delhi: Leader of the Opposition (LoP) in the Lok Sabha, Rahul Gandhi on Tuesday launched a sharp attack on the Goods and Services Tax (GST) regime, describing it as a “tool of economic injustice” and demanded people-centric tax reforms.

Marking eight years since GST’s rollout, Congress MP Gandhi asserted that the system continues to face widespread criticism for fostering centralised control rather than delivering meaningful tax reform.

In a post on X, LoP Gandhi stated, “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.”

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His remarks formed part of a broader denunciation of GST, which he claims has failed to live up to its original promise.

According to Gandhi, the GST — initially promoted as a good and simple tax — has devolved into a burdensome five-slab framework, amended over 900 times.

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.

A “Good and Simple Tax”…

— Rahul Gandhi (@RahulGandhi) July 1, 2025

He argued that the system disproportionately benefits large corporations capable of navigating its bureaucratic complexities, while imposing a heavy compliance burden on small traders, MSMEs, and ordinary citizens.

LoP Gandhi described the structure as a “compliance nightmare,” citing examples such as caramel popcorn and cream buns being caught in its convoluted tax net.

For smaller enterprises, which he called the backbone of India’s economy, the tax has become an existential challenge due to limited financial and administrative resources.

Rahul Gandhi reiterated that GST was originally envisioned by the UPA government as a unifying economic reform to harmonise India’s tax systems and enhance market efficiency.

However, he contended that its implementation under the current NDA administration has strayed from that vision, marred by excessive amendments, politicised enforcement, and a disregard for federal principles.

Calling for structural reform, LoP Gandhi advocated for a GST regime that is people-centric, business-friendly, and rooted in cooperative federalism.

His remarks align with the Congress party’s broader narrative of economic equity and decentralisation, echoing concerns raised by Opposition leaders and small business associations.

The Congress MP also highlighted the persistent challenges faced by small traders in navigating the GST portal, which he said has turned routine compliance into a daily ordeal.

Introduced under the Narendra Modi-led government in July 2017, GST is hailed as a transformative measure, a ‘One Nation, One Tax’ aimed at unifying India’s fragmented tax landscape.

Citing reports, LoP Gandhi claimed that over 18 lakh enterprises have shut down since GST’s inception, attributing much of this decline to financial stress induced by the tax regime.

LoP Gandhi further criticised the exclusion of petrol and diesel from the GST framework, arguing that it keeps input costs high for farmers, transporters, and consumers.

Supporters of the original UPA-era vision now argue that the current implementation has deviated significantly from its intent, calling for a recalibrated GST that is inclusive, equitable, and truly federal in spirit.

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