GST 2.0 sparks political clash: Congress calls it ‘Growth-Suppressing Tax’, BJP hails PM Modi’s ‘Navratri gift’

As PM Modi launches ‘GST Bachat Utsav’, Congress slams reforms as inadequate while BJP leaders call it historic relief for middle class and poor.

Prime Minister Narendra Modi on Sunday used his national address to formally link the rollout of Next-Generation GST reforms with the start of Navratri, describing it as a major step towards Aatmanirbhar Bharat.

He called the revamp a 'GST Bachat Utsav' (savings festival), promising that the reforms would simplify taxation, cut prices for households, and ease compliance for businesses. Modi also highlighted India’s progress in the last decade, noting that 25 crore people have moved out of poverty to form a new “neo-middle class” with its own aspirations.

“This year, the government presented a gift by making income up to Rs 12 lakh tax-free. Along with GST cuts, the poor, the neo-middle class, and the middle class are receiving a double bonanza,” the Prime Minister said.

Congress hits back: ‘Growth-Suppressing Tax’

The opposition Congress wasted no time in pushing back, branding the reforms inadequate and calling the GST itself a 'Growth-Suppressing Tax'.

Party president Mallikarjun Kharge said the Modi government imposed a complicated 'Gabbar Singh Tax' in 2017 with nine slabs instead of the simple GST structure originally proposed by Congress. “Over Rs 55 lakh crore has been collected in eight years, while essential issues remain unaddressed,” he posted on X.

नौ सौ चूहे खाकर, बिल्ली हज को चली !

.@narendramodi जी,

आपकी सरकार ने कांग्रेस के सरल और कुशल GST के बजाय, अलग-अलग 9 स्लैब से वसूली कर “गब्बर सिंह टैक्स” लगाया और 8 साल में ₹55 लाख करोड़ से ज़्यादा वसूले।

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अब आप ₹2.5 लाख करोड़ के “बचत उत्सव” की बात कर के जनता को गहरे घाव… pic.twitter.com/t7Z64wL67S

— Mallikarjun Kharge (@kharge) September 21, 2025

Senior leader Jairam Ramesh listed long-standing gaps:

• High GST burden on essentials like food, school supplies and medical care.
• Compliance headaches and threshold challenges for MSMEs.
• Pending sectoral issues in textiles, tourism, handicrafts and agriculture inputs.
• No clarity on bringing electricity, alcohol, petroleum and real estate into GST.
• No extension of compensation to states for five years, despite demands.

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.

The Indian National Congress has long argued that the GST has been a Growth Suppressing Tax. It is plagued with a high…

— Jairam Ramesh (@Jairam_Ramesh) September 21, 2025

“Whether these reforms, delayed by eight years, will actually boost private investment remains to be seen,” Ramesh said, also pointing to India’s rising trade deficit with China and the fear-driven exit of some businesses abroad.

Congress leader Randeep Surjewala added a sharp youth angle, criticising Modi’s silence on US H-1B visa fee hikes: “Young Indians with IT skills are facing serious challenges, yet the Prime Minister has remained silent.”

Meanwhile, West Bengal Chief Minister Mamata Banerjee accused the Centre of taking undue credit for the reduction in GST rates, insisting that the push for rate cuts had come from the state.

Her remarks followed Prime Minister Narendra Modi’s address to the nation, where he announced that a 'GST savings festival' would begin with Navratri and described it, along with income tax relief, as a 'double bonanza' for citizens.

Without naming Modi, Banerjee said, “We are losing Rs 20,000 crore in revenue, but we are happy that GST has been lowered. The truth is, it was our proposal. We had demanded rate cuts at the GST Council meeting with the Union Finance Minister. So why are you claiming the credit?”

Delhi Aam Aadmi Party (AAP) president Saurabh Bharadwaj on Sunday took a dig at PM Modi, calling the announcement neither new nor impactful. He also suggested the timing of the speech was chosen carefully to avoid clashing with the India vs Pakistan cricket match later in the evening.

“It seemed like the Prime Minister would talk about the $100,000 H-1B visa fee hike or the tariffs imposed by US President Trump. Instead, he repeated the old GST news,” Bharadwaj told ANI.

Taking a swipe at Modi’s usual style of evening addresses, Bharadwaj added, “The Prime Minister usually speaks at 8 PM, but today he spoke at 5 PM, perhaps because at 8 there’s the India vs Pakistan match.”

BJP frames it as ‘historic gift’

On the other side, BJP leaders welcomed the reforms, portraying them as transformative.

Praveen Khandelwal, BJP MP, said Navratri would usher in a 'new dawn', with over 400 items seeing rates slashed from 12 percent or 18 percent to 5 percent. “I assure Prime Minister Modi that the country’s traders will pass on every benefit to consumers,” he told ANI.
Keshav Prasad Maurya, Deputy CM of Uttar Pradesh, called the reforms a “historic decision” and urged people to embrace Modi’s call for swadeshi goods. “Whenever PM Modi addresses the nation, he brings a gift for the people. Today’s gift is GST reform, along with a renewed push for Made-in-India products,” Maurya said.

PM Modi, while defending the changes, described reform as an “ongoing process” that must adapt to changing times. “Next-generation reforms are equally necessary. GST 2.0 has been crafted to meet the country’s current needs and future dreams,” he said.