Congress leader Rahul Gandhi, serving as Leader of the Opposition in the Lok Sabha, said the Goods and Services Tax has become “a brutal tool of economic injustice and corporate cronyism”, targeting the poor and micro, small and medium enterprises, according to a post on X. At the eight-year point of GST’s implementation, he urged a shift towards a tax system that is people‑centric, business‑friendly and genuinely federal in nature.
Gandhi argued that the original promise of “a good and simple tax” has evaporated, replaced by a convoluted five‑slab structure that has been amended over 900 times, ensnaring everyday items such as caramel popcorn and cream buns. He claimed this complexity disproportionately burdens small traders, who struggle to comply, while large corporations with robust accounting teams capitalise on the loopholes.
He highlighted that more than 1.8 million MSMEs have reportedly shut down since the GST’s introduction, and that the tax system now covers essentials ranging from tea to health insurance—even as corporate tax benefits surpass ₹1 lakh crore annually. Gandhi also pointed to the deliberate exclusion of petrol and diesel from the GST framework, stating that this has increased costs for farmers, transporters and ordinary citizens.
Gandhi accused the central government of weaponizing GST by targeting dues in states not governed by the ruling party, alleging this is evidence of an anti‑federal bias. He evoked the original vision of GST initiated under the United Progressive Alliance, aimed at unifying the market and simplifying taxation. That vision, he argued, has been undermined by flawed rollout, political partiality and excessive bureaucracy.
At the same time, official statistics suggest the GST has brought benefits: aligning with the global trend of value‑added taxation, it subsumed multiple indirect taxes, reduced interstate checkpoints, and fuelled formalisation. It also eliminated octroi, reducing transit times by roughly 20%. Yet, Gandhi contends the theoretical efficiency has not translated into practical fairness.
The Finance Ministry, however, counters that the system has broadened the tax net and increased compliance rates. The GST Council, comprising central and state finance ministers, meets regularly to reassess rates and address grievances. Notably, slab changes have been deployed to buffer the impact on essential goods, and occasional rate adjustments have been made to address concerns.
Economic analysts describe the GST as a structural shift with initial turbulence. They note that compliance has steadily improved, but gaps in infrastructure and support for small businesses persist. MSMEs express frustration over frequent rate changes and persistent portal glitches, which impose additional costs and administrative hurdles.
States with non-BJP governments have occasionally flagged delays in compensation and refunds. While the federal framework aims for uniformity, differences in administrative capacity and political coordination continue to surface.
In calling for a GST overhaul, Gandhi emphasised a three‑pronged approach: it should serve the wider public rather than a select elite; it should promote ease of business for millions of small operators; and it should reinforce cooperative federalism that respects state autonomy.
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