GST 2.0: BJP leaders celebrate, opposition alleges 'undue credit'

Congress accused that the 'limited' reform comes eight years too late; Vaishnaw pointed to the significantly higher tax rates under the UPA government

As the new rates under the revised Goods and Services Tax (GST) started rolling out on Monday, Prime Minister Narendra Modi shared photos of front pages of various Hindi and English newspapers on his X account to underscore the nationwide buzz.

 

"From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home," Modi posted on X.

 

Earlier on Monday, PM Modi interacted with traders and entrepreneurs in Itanagar.

 

“They expressed their appreciation for the GST reforms and the launch of the GST Bachat Utsav. They highlighted how these initiatives will benefit key sectors like fisheries, agriculture, and other local enterprises,” he said.

 

 

Modi added that he emphasised the importance of maintaining quality standards and nurturing a strong spirit of buying Made-in-India products.

 

Union Home Minister Amit Shah said the Next-Gen GST reforms are a testament to the Prime Minister's resolve to serve the poor, youth, farmers, and women.

 

He added that the new reforms would accelerate India’s growth on the path to becoming the most prosperous country in the world. 

 

Gabbar Singh Tax: Too little, too late

 

On the other hand, the Indian National Congress (INC) said at a press conference that the ‘limited’ reform comes eight years too late and that a ‘big question mark’ remains over whether the benefits of tax reduction will reach consumers.

 

Congress general secretary in-charge of communications, Jairam Ramesh, recalled that Rahul Gandhi and the Congress had flagged flaws in the GST system at its launch in 2017, insisting it should be termed the ‘Gabbar Singh Tax’.

 

Gabbar Singh, the iconic villain from the Hindi film Sholay, is often invoked to signify fear and brutality.

 

"The Modi government mocked him and the Congress, ignored the concerns, and brought about no changes. Now that US President Donald Trump has imposed tariffs, they have been forced to improve the tax structure, and are celebrating it like a festival. This government makes an event of everything, as their focus is on diverting attention from real issues," he told PTI.

 

Countering the charge, Union Minister Ashwini Vaishnaw pointed to the significantly higher tax rates under the UPA government, retorting with the jibe “Gabbar Singh ke bade dada” (Gabbar Singh’s grandfather).

 

Vaishnaw further expressed confidence that the consumption boost would raise investment and, consequently, employment.

 

He added that, coupled with tax exemption on earnings up to ₹12 lakh, the decision would significantly improve the life of the middle class.

 

Echoing a similar tone, Assam Chief Minister Himanta Biswa Sarma urged business houses, shops, and traders in the state to comply with the rules and ensure that the full benefit of price cuts from rationalised GST rates is passed on to consumers.

 

“These efforts, coupled with historically low inflation in Assam, will lead to the perfect trinity -- fast-paced growth, higher consumption, and robust savings,” the CM said in a post on X. 

 

Opposition CMs allege ‘undue credit’

 

Contrary to Sarma’s claim, West Bengal Chief Minister Mamata Banerjee accused the Centre of passing the financial burden to states after lowering GST and taking ‘undue credit’ for it.

 

"It was I who had asked for withdrawing the additional GST burden on people, and the Centre should not take undue credit for it. The Centre won’t have to spend a single paisa. Every state will have to find ways to tide over the revenue loss," she said.

 

Similarly, Karnataka Chief Minister Siddaramaiah slammed Prime Minister Narendra Modi for claiming credit for the new GST reforms, calling his actions ‘deceptive’.

 

"It was Modi who implemented GST, it was Modi who increased GST rates, and now it is Modi who is patting himself on the back," Siddaramaiah said.

 

“We were the ones who opposed when GST was increased to 18 per cent and 28 per cent. The very people who collected it all these years are now taking credit. See how cleverly they are deceiving Indians. You should not fall for this,” he added.

 

View from the industry

 

Amidst the churn of political discourse, where ruling party leaders celebrated the reform and opposition leaders criticised it, industry bodies said the reforms would increase disposable income for consumers, reduce the compliance load on MSMEs, lower industry input costs, and reinforce India’s growth trajectory.

 

"The streamlined tax structure, combined with a renewed emphasis on Swadeshi as outlined by Prime Minister Narendra Modi, will support domestic production and manufacturing, in keeping with the vision of Aatmanirbhar and Viksit Bharat," FICCI President Harsha Vardhan Agarwal said.

 

"CII believes the package framed by the Prime Minister as a GST Bachat Utsav will put more money in consumers' hands, ease compliance for MSMEs, lower input costs for industry, and strengthen India’s growth momentum," CII Director General Chandrajit Banerjee said.