Leader of Opposition Rahul Gandhi criticizes the GST regime on its 8th anniversary, calling it a “tool of economic injustice.” He urges for people-centric, business-friendly tax reforms that ease the burden on MSMEs and small traders, aligning with the original vision of a unified, fair tax system.
On the eighth anniversary of the Goods and Services Tax (GST) rollout in India, Leader of the Opposition (LoP) in the Lok Sabha, Rahul Gandhi, launched a scathing attack on the existing GST regime. Calling it a “tool of economic injustice,” Gandhi argued that the system has failed to deliver on its promises and disproportionately burdens small businesses and ordinary citizens.
In a strongly worded post on social media platform X (formerly Twitter), 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.” His statement comes amid growing frustration among micro, small and medium enterprises (MSMEs) and traders over the complexities and compliance burdens associated with GST.
The Congress MP reiterated that the GST was originally conceptualized during the UPA regime as a unified and simple tax aimed at harmonizing India’s tax structure and enhancing market efficiency. However, he asserted that its implementation under the BJP-led NDA government has turned it into a bureaucratic maze riddled with inefficiencies and inequities.
Describing GST as a “compliance nightmare,” Gandhi highlighted bizarre examples such as caramel popcorn and cream buns being subjected to confusing tax slabs. He noted that the current five-slab system has undergone more than 900 amendments since its inception in July 2017, leading to widespread confusion among taxpayers.
“For small traders, who are the backbone of India’s economy, GST has become an existential threat,” he said. Gandhi emphasized that while large corporations have the resources to navigate the system’s complexities, smaller businesses lack the financial and administrative infrastructure to do so.
He also drew attention to the persistent technical issues faced by small entrepreneurs while filing returns through the GST portal. According to him, what was intended to be a streamlined digital process has become a daily ordeal for thousands of businesses.
Highlighting the broader economic impact, Gandhi cited reports suggesting that over 18 lakh enterprises have shut down since GST was implemented. He attributed much of this decline to financial stress triggered by the complicated tax structure.
Additionally, Gandhi criticized the exclusion of petrol and diesel from the GST framework, arguing that it keeps input costs high for farmers, transporters, and consumers. This, he said, further weakens the rural economy and undermines efforts to lower inflation.
He stressed the need for structural reforms in the GST regime and called for a return to the original vision of a unified tax system that is inclusive, transparent, and rooted in cooperative federalism. “The current GST is neither simple nor just. It is centralised, complex, and discriminatory,” he stated.
Echoing the Congress party’s broader economic narrative, Gandhi’s comments reflect growing calls from various quarters—including state governments, Opposition leaders, and industry bodies—for a reimagined tax structure that supports economic equity and decentralisation.
The Congress leader also touched upon the political dimensions of the GST implementation, alleging that it has been marked by excessive central control and a disregard for federal principles. This politicisation, he argued, has further weakened trust among states and eroded the cooperative spirit needed for a robust economic framework.
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Supporters of the original UPA-era GST design claim that the BJP-led government has strayed from its intent, implementing a version that benefits the powerful while punishing the vulnerable. According to Gandhi, meaningful tax reform must now center on people’s needs, particularly those of small traders, farmers, and daily wage earners.
As the debate over the future of GST gains momentum, Rahul Gandhi’s statements are likely to fuel renewed discussions in Parliament and beyond, placing pressure on the government to revisit and reform one of India’s most significant post-liberalisation economic measures.
