The Congress party has strongly criticized the central government’s recent announcements on Goods and Services Tax, saying the measures are not comprehensive enough to qualify as major reform. Labeling the changes “GST 1.5,” Congress leaders argued that the core issues troubling traders, consumers, and states remain unresolved, and the nation still awaits what they describe as “true GST 2.0.”
Senior Congress spokespersons pointed out that when GST was first rolled out, the opposition had highlighted several structural shortcomings, including too many tax slabs, complicated compliance rules, and a weak mechanism for compensating states. They claimed that even after eight years, the government has not corrected these flaws. According to the party, the latest changes are only incremental steps that fall short of delivering the original promise of GST as a simple, transparent, and fair tax regime.
Congress leaders emphasized that a genuine GST 2.0 would require reducing the number of tax slabs, simplifying returns, ensuring timely compensation to states, and eliminating unnecessary exemptions. They alleged that the current system has burdened small businesses with complex filing processes and created confusion among traders. Many enterprises, particularly in the informal sector, continue to struggle with compliance, which they argue discourages entrepreneurship and growth.
The party also questioned the Centre’s handling of federal cooperation under GST. They claimed that states have often been left dissatisfied, as compensation has been delayed or denied, undermining trust in the system. According to Congress, the GST Council should function more as a platform for consensus rather than as a mechanism dominated by the central government.
Highlighting the impact on ordinary citizens, Congress said the existing GST framework has failed to lower prices, contrary to earlier promises. Instead, the mix of multiple rates has resulted in higher costs for essential goods and services. With inflation already straining household budgets, the party argued that only a rationalized GST with fewer slabs can ease the burden on consumers.
The party further alleged that the government’s approach to reforms is reactionary rather than visionary. They noted that many suggestions being discussed today were raised by opposition leaders years ago but ignored at the time. Congress leaders claimed this delayed recognition of problems has caused avoidable hardship for businesses and households.
In its critique, the party positioned itself as an advocate of genuine reform, while accusing the government of merely offering cosmetic changes to claim success. According to them, GST 1.5 is only a partial improvement that does not resolve the structural flaws of the system. They insisted that GST 2.0 should be comprehensive, inclusive, and built on dialogue with stakeholders across the political and economic spectrum.
The debate over GST reforms is expected to intensify as the government prepares for further changes in the tax regime. For Congress, the issue offers an opportunity to highlight governance shortcomings and connect with business communities and states. For the ruling alliance, it presents the challenge of demonstrating that its policies can make GST the unified and efficient system originally envisioned.
