Key Points

He mentioned that the Congress party had been advocating for reforms in GST for a decade. Kharge claimed that the GST introduced under the NDA government included Tax Slabs of 0%, 5%, 12%, 18%, 28% followed by special rates of 0.25%, 1.5%, 3%, and 6%.

"For nearly a decade, the Indian National Congress has been demanding the simplification of GST. The Modi government turned "One Nation, One Tax" into "One Nation, 9 Taxes" .Which included Tax Slabs of 0%, 5%, 12%, 18%, 28% and special rates of 0.25%, 1.5%, 3%, and 6%," Mallikarjun Kharge wrote on 'X'.

The Congress president recalled that the party demanded GST reforms in its 2019 and 2024 Lok Sabha election manifestos. He further alleged that the BJP opposed the GST bill, which was brought by the UPA-2 government Finance Minister Pranab Mukherjee in 2011.

"The Congress Party had demanded GST 2.0 with a simple and rational tax system in its 2019 and 2024 manifestos. We had also demanded the simplification of GST's complex Compliances, which had severely affected MSMEs and small businesses. On 28 February 2005, the Congress-UPA government formally announced GST in the Lok Sabha. In 2011, when the then Finance Minister Pranab Mukherjee brought the GST Bill, the BJP opposed it. When Modi Ji was the Chief Minister, he vehemently opposed GST," Kharge said.

The Congress president targeted the Centre for celebrating record GST collections, from taxes collected by ordinary people, stating that for the first time, taxes have been imposed on farmers.

"Today, the same BJP government celebrates record GST Collections, as if collecting tax from the common people was some great achievement. For the first time in the country's history, taxes have been imposed on farmers. This Modi government had imposed GST on at least 36 items in the agricultural sector," Kharge said.

The Congress leader mentioned that his party renamed GST as "Gabbar Singh Tax" because the government imposed taxes on daily necessities, such as Milk, Curd, flour, grains, and even children's pencils and books, as well as oxygen, insurance, and hospital expenses.

He claimed that two-thirds of the country's GST collections come from the middle class, whereas only three per cent of GST is paid by the country's billionaires.

"Milk-curd, flour-grains, and even children's pencils-books, oxygen, insurance, and hospital expenses--on everyday things like these, the Modi government has imposed GST tax. That's why we named this BJP's GST the "Gabbar Singh Tax." Two-thirds of the total GST, i.e., 64%, comes from the pockets of the poor and middle class, but only 3% GST is collected from billionaires, while the Corporate Tax rate has been reduced from 30% to 22%," Kharge said. Reflecting to the increase in income tax and GST collections in the past five years, Mallikarjun Kharge noted that Centre's "sleep" regarding has finally awakened, and they have spoken about Rate Rationalisation.

He also demanded compensation for all states because the reduction in taxes can affect their revenues.

"In the last 5 years, there has been a 240% increase in Income Tax collection and a 177% increase in GST collection. It is a good thing that, even if 8 years late, the Modi government's Kumbhakarnian sleep regarding GST has finally awakened, and they have spoken about Rate Rationalisation upon waking. All states should be given Compensation for a period of 5 years, taking 2024-25 as the base year, because a reduction in rates is certain to have an adverse impact on their revenues. The complex Compliances of GST must also be eliminated; only then will MSMEs and small industries truly benefit," the 'X' post said.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.

- ANI