New Delhi: Responding to Prime Minister Narendra Modi’s national address on the rollout of next-generation GST reforms on Sunday, Congress general secretary in-charge communications Jairam Ramesh criticised the BJP government’s handling of the tax regime and highlighted the party’s long-standing demand for a more comprehensive overhaul.

“The Prime Minister addressed the nation today to claim sole ownership of the amendments made to the GST regime by the GST Council, a constitutional body... We have been demanding a GST 2.0 since July 2017 itself. This was a key pledge made in our Nyay Patra for the 2024 Lok Sabha elections,” Ramesh tweeted, accusing the BJP-led government of claiming sole ownership of changes made by the GST Council, a constitutional body.

Ramesh called the current GST system a “growth-suppressing tax”, citing multiple tax brackets, high rates on items of mass consumption, widespread evasion, costly compliance burdens, and an inverted duty structure.

He flagged several issues that remain unaddressed:

  • The concerns of MSMEs—the major employment generators—need meaningful resolution, including higher thresholds for interstate supplies.
  • Sector-specific problems in textiles, tourism, exporters, handicrafts, and agricultural inputs require urgent attention.
  • States should be incentivised to introduce state-level GST on electricity, alcohol, petroleum, and real estate.
  • The extension of compensation to states for another five years, demanded in the spirit of cooperative federalism, remains pending.

Ramesh also questioned the reforms’ ability to boost private investment, pointing out that India’s trade deficit with China has doubled to over $100 billion in five years. “Indian businesses are crippled by fear and oligopolisation, forcing many to consider moving abroad,” he said.

Speaking on the eve of Navratri, Modi wished everyone a happy festival and called the reforms a major step toward building an Aatmanirbhar Bharat.

“From tomorrow, the festival of Navratri is starting. I extend my best wishes to you. From the first day of Navratri, the country is taking an important step towards Aatmanirbhar Bharat. Tomorrow, on the first day of Navratri, Next-Generation GST reforms will come into effect with sunrise,” he said.

He added, “From tomorrow in the nation, ‘GST Bachat Utsav’ will commence. Your savings will increase and you will be able to buy your favourite things… ‘GST Bachat Utsav’ will benefit all sections of the society…”