Rahul slams GST as ‘tool of economic injustice’ and ‘corporate cronyism’

Congress leader Rahul Gandhi Tuesday strongly criticized the Goods and Services Tax, calling it a “brutal tool of economic injustice and corporate cronyism” eight years after its implementation.

Taking to handle X, Gandhi, who is also the Leader of Opposition in Lok Sabha, alleged the GST has been “designed to punish the poor, crush Micro, Small, and Medium Enterprises, undermine states, and benefit a few billionaire friends of the Prime Minister.”

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“A ‘Good and Simple Tax’ was promised. Instead, India got a compliance nightmare and a five-slab tax regime that has been amended over 900 times,” Gandhi stated, highlighting the challenges faced by small shopkeepers, MSMEs, and ordinary traders, who are often unable to navigate the complex GST portal and are drowning in red tape.

Gandhi pointed out that MSMEs, India’s largest job creators, have suffered the most under the GST regime. “Over 18 lakh enterprises have shut down since the rollout of GST eight years ago,” he claimed. He also criticized the government for allowing corporates to enjoy over Rs 1lakh crore in tax breaks annually, while citizens pay GST on essential items like tea and health insurance.

Gandhi emphasized the need for a reformed GST that is people-first, business-friendly, and truly federal in spirit.

“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 our nation’s progress,” he said.

Gandhi’s remarks highlight the ongoing debate about the effectiveness and fairness of the GST regime in India.