Rahul: GST tool of economic injustice

Leader of Opposition in the Lok Sabha, Rahul Gandhi, on Tuesday criticised the Goods and Services Tax (GST), calling it a tool of “economic injustice” that has punished the poor while benefiting a few corporates. His remarks came shortly after Prime Minister Narendra Modi hailed GST as a “landmark reform” that has reshaped India’s economic landscape, marking eight years since its implementation.

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In a post on X, 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.”

He 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.

However, Rahul launched a scathing attack on the Modi government over GST implementation. Responding to the PM’s remarks, Rahul said: “Eight 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 PM.”

Rahul 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”. He said the GST framework favoured large corporations with resources to manage its complexities, while small traders and MSMEs struggled to cope.