GST is a brutal tool of economic injustice: Rahul Gandhi 

Goods and Services Tax (GST) is a “brutal tool of economic injustice and corporate cronyism”, Leader of Opposition in Lok Sabha Rahul Gandhi said on Tuesday (July 1, 2025). His remarks come on the eighth anniversary of GST.

The Congress leader said 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 the nation’s progress.

“Eight years on, the Modi government’s GST is not a tax reform — it’s a brutal tool of economic injustice and corporate cronyism. It was designed to punish the poor, crush MSMEs, undermine states, and benefit a few billionaire friends of the Prime Minister,” he said in a post on X. A ‘Good and Simple Tax’ was promised, he said, but instead we got a compliance nightmare and a five-slab tax regime that has been amended over 900 times. “Even caramel popcorn and cream buns are caught in its web of confusion,” Mr. Gandhi said.

This bureaucratic maze favours big corporates who can navigate its loopholes with armies of accountants, while the small shopkeepers, MSMEs, and ordinary traders, Mr. Gandhi said, drown in red tape.

“MSMEs - India’s largest job creators have suffered the most. Over 18 lakh enterprises have shut down since the rollout of GST eight years ago. Citizens now pay GST on everything from tea to health insurance, while corporates enjoy over ₹1 lakh crore in tax breaks annually,” he said.

Petrol and diesel have been deliberately kept outside the GST framework, hurting farmers, transporters, and ordinary people, he said.

“GST dues are also weaponised to punish non-BJP ruled states - clear proof of the Modi government’s anti-federal agenda,” Mr. Gandhi alleged.

He said the GST was a visionary idea by the United Progressive Alliance (UPA), meant to unify India’s markets and simplify taxation.

“But its promise has been betrayed by poor implementation, political bias, and bureaucratic overreach. A reformed GST must be people-first, business-friendly, and truly federal in spirit,” Mr. Gandhi said.