‘Big question whether GST reduction benefits will be passed on to consumers’

New Delhi: With reduced GST rates on several items coming into effect, the Congress on Monday said the “limited” reform comes eight years too late and a “big question mark” remains on whether the benefits of tax reduction will be passed on to consumers.

Congress general secretary in-charge of communications, Jairam Ramesh, said the National Anti-profiteering Authority (NAA) was established under Section 171 of the Central Goods and Services Tax Act, 2017, to monitor whether GST rate cuts resulted in the reduction of consumer prices but was rendered “toothless” by the Narendra Modi government with a notification issued of September 30, 2024.

“It should not be a case of ‘vote chori’ on one hand and ‘munafakhori (profiteering)’ on the other hand with the people not getting the benefits of the GST reduction,” Ramesh told news agency.

He also claimed that “procedural complexities” have not been eased in the reforms despite the fact that it was much needed.

Ramesh pointed out that at the very launch of GST in 2017, Rahul Gandhi and the Congress had pointed out the problems and asserted that what was brought in was the “Gabbar Singh Tax”.

“The Modi government mocked him and the Congress, ignored the concerns, and brought about no changes. Now that US President Donald Trump has imposed tariffs, they have been forced to improve the tax structure, and are celebrating it like a festival. This government makes an event of everything as their focus is on diverting attention from real issues,” he told news agency.

Taking a swipe at Prime Minister Narendra Modi, Ramesh said that when he was the chief minister of Gujarat, he opposed the GST proposal of the then UPA for eight years from 2006 to 2014.

“We have been demanding reform of the GST regime since 2017, but the reform that has been carried out eight years too late is limited. The procedural complexities have not been eased, which was much needed. There is also a big question mark on whether the benefits of tax reduction will be passed on to the consumers or not,” Ramesh said.