Jairam Ramesh Critiques New GST Regime as Government Celebrates Rollout

Congress Member of Parliament Jairam Ramesh has publicly criticized the Government of India’s handling of the Goods and Services Tax (GST), calling the new system neither “good nor simple.” His comments came as the most significant overhaul of the GST regime was set to take effect on July 1, 2024.

Ramesh, reflecting on the initial implementation of the GST in July 2017, recalled how former Congress leader Rahul Gandhi famously dubbed it the “Gabbar Singh Tax.” He noted, “GST was implemented for the first time in July 2017. That is when Rahul Gandhi and the Congress party called it the Gabbar Singh Tax. It is neither good nor simple.” Ramesh expressed concerns that the rollout of GST would prove detrimental to the economy, especially following the controversial demonetisation policy.

The Congress MP accused the government of failing to make necessary adjustments over the past eight years, stating, “They didn’t believe in us for 8 years and brought about no changes.” Ramesh attributed the recent pressure to reform the tax structure to external factors, particularly the tariffs imposed by the United States during Donald Trump’s presidency. He remarked, “When Trump imposed tariffs, that is when the government was forced to improve the tax structure, and now they are celebrating it like a festival.”

In his address, Ramesh traced the history of the GST proposal back to 2006, when it was first introduced in the budget speech by then Finance Minister P Chidambaram. He highlighted that from 2006 to 2014, only one Chief Minister opposed the GST. That same individual later became Prime Minister in 2014 and subsequently reversed his position, advocating for the reform by 2017.

Ramesh elaborated on the legislative process, explaining, “In 2010, it was presented in the Parliament as an act. For 2.5 years, it was there with the standing committee. When its report was presented, around the same time, the elections were announced.” He emphasized the changes in political stance regarding GST, noting the significant shift in support from the Prime Minister who had once opposed it.

As the Government of India prepares for the new GST structure to take effect, the debate surrounding its implementation continues. Ramesh’s remarks resonate with those who remain skeptical about the government’s ability to manage significant economic reforms effectively.