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The GST story – From reform to burden

BANDI SUDHAKAR GOUD

The BJP-led Central Government has been relentlessly exploiting the people of India in the name of Goods and Services Tax (GST). Since its introduction in 2017, the Narendra Modi Government has burdened every household by increasing the cost of essential commodities, collecting over `60 lakh crore through GST. Now, by announcing a reduction in certain GST slabs, the same Government is attempting to project itself as if it is giving a “discount” to the people. This is nothing more than a political drama.

The way the central Government has been handling GST resembles the arbitrary and unpredictable decisions of a medieval monarch like Muhammad bin Tughlaq, who was infamous for sudden policy reversals. If GST rates are being reduced today, does that not prove that the Government’s earlier decisions were excessive, unjustified and harmful to the common man.

In July 2017, the Modi Government rolled out GST across India, branding it as “One Nation, One Tax.” The idea of a simplified tax system sounded attractive. But in practice, GST turned out to be far from simple. Multiple tax slabs, frequent rate changes and complex filing procedures created chaos in the system.

Congress leader Rahul Gandhi was quick to label it the “Gabbar Singh Tax” – a tax that robbed the poor and small businesses, just like the infamous dacoit Gabbar Singh looted villages in popular culture. The name stuck, because for millions of Indians, GST became synonymous with harassment, rising costs and bureaucratic headaches.

Small traders, shopkeepers, the middle class and daily wage earners all suffered. Instead of making business easier, GST increased compliance pressure with complicated returns, penalties and constant fear of notices. On the other side, consumers faced higher prices – from food grains and cooking oil to electricity bills, school fees and everyday essentials. Nothing was spared.

Since 2017, the Government has collected nearly `60 lakh crore in GST revenue. This staggering sum came directly out of the pockets of ordinary citizens. But the critical question remains – how much of this revenue has been reinvested for the welfare of the people. Instead of using the money for development, the Modi Government chose to write off corporate loans worth lakhs of crores, benefiting only a handful of wealthy industrialists. At the same time, ordinary Indians – struggling to make ends meet – were crushed under high taxes and rising inflation.

This contradiction is glaring: on one hand, loan waivers for the rich; on the other, unbearable taxes on the poor. Such a policy framework is not just anti-people but also anti-democratic. A Government that feeds on the sweat and hard work of the masses to serve the interests of a few billionaires is a Government that has lost touch with the ground realities of its people.

The Latest “Reduction” – An Admission of Guilt The Government’s recent announcement of lowering GST rates on some items is nothing short of an admission of past mistakes. If there is room to reduce taxes now, why were ordinary citizens forced to carry the heavy burden for so many years. The BJP Government claims that raising GST rates earlier was a “necessity” and lowering them now is “pro-people.” This selective justification exposes the arbitrary, opportunistic and whimsical governance style of the Modi regime – a style that reminds us once again of Tughlaq’s illogical decisions that destabilised society.

Governance Should Serve People, Not Exploit Them True governance must focus on making people’s lives easier and more affordable. Unfortunately, the BJP’s taxation policies have achieved the opposite – deepening inequality, increasing inflation and destroying the confidence of small businesses and the middle class. Even today, the so-called “reductions” in GST slabs appear cosmetic and theatrical. They fail to address the core question: who will compensate the people for the excessive taxes they paid over the last eight years.

The people of India deserve answers. They deserve a Government that values transparency, accountability and welfare over political optics. Time for Change – A Pro-People Government At this stage, what the country needs is not a Government that exploits its citizens in the name of reform, but one that prioritizes welfare and social justice. The GST rollback, partial though it is, proves that the Modi Government’s policies were flawed from the beginning. It is time for the people of India to recognize this pattern of exploitation and deception.