Opposition slams PM Modi address on GST, calls reforms mere 'band-aid'

Congress and Trinamool Congress claimed that Modi's address to the nation on the eve of the implementation of new GST slabs was an attempt to claim credit.

New Delhi: As Prime Minister Narendra Modi insisted that GST reforms will accelerate growth, the Opposition on Sunday flagged concerns saying the fresh changes are “inadequate” with the Congress claiming that the government that collected Rs 55 lakh crore through nine GST slabs is talking about putting a “a small band-aid on the deep wounds” inflicted on people.

While AAP attacked the Prime Minister for scheduling his address at 5 PM instead of 8 AM alleging that it was done to watch the India-Pakistan cricket match three hours later. CPI(M) said Modi was playing another “jumla”.

Congress president Mallikarjun Kharge likened Modi’s address to a saying, “a cat set off for Hajj pilgrimage after devouring nine hundred rats”. He said the Modi government had imposed ‘Gabbar Singh Tax’ collecting Rs 55 lakh crore in eight years through nine slabs.

“Now, by talking about a Rs 2.5 lakh crore ‘savings festival’, you are trying to put a small Band-Aid on the deep wounds inflicted on the public. The public will never forget that you collected the highest GST on their dal-chawal-grain, pencils, books, treatment, farmers' tractorseverything. Your government should apologise to the public,” he said.

CPI(M) General Secretary MA Baby said Modi was “trying to spin a jumla”, by claiming this will reduce prices and lead to self-reliance. “If the government is really concerned about self-reliance it would not have allowed 100 per cent FDI in insurance or opened crucial sectors like defence and mining for exploitation. Moreover, it would have stood firm against US bullying,” he added.

AAP Delhi chief Saurabh Bharadwaj said, “it seemed like Modi would say something about increasing the H-1B fees and imposing tariffs by the US. But he did not. The address to the nation was at 5 PM today instead of 8 PM because there is an India-Pakistan match at 8 PM.”

Trinamool Congress spokesperson Kunal Ghosh said the Modi government was forced to change the GST rates but now they are trying to take credit for it. Shiv Sena (UBT)'s Anand Dubey claimed Modi said nothing new in his speech.

Arguing that the current GST reforms are “inadequate”, Congress General Secretary (Communications) Jairam Ramesh said Modi’s attempt was to “claim sole ownership” of the amendments made by the GST Council, a constitutional body. 

He demanded that the “widespread” concerns of MSMEs must be addressed meaningfully and this involves further increasing the thresholds that apply to inter-state supplies. 

He also said issues that have surfaced in sectors like textiles, tourism, exporters, handicrafts and agricultural inputs must be tackled while states should be incentivised to move towards the introduction of state-level GST to cover electricity, alcohol, petroleum, and real estate as well.

“The key demand of the states made in the true spirit of cooperative federalism namely, the extension of compensation for another five years to fully protect their revenues remains unaddressed. Whether this round of GST changes delayed by 8 years will actually boost the private investment that is essential for higher GDP growth remains to be seen,” he said.

“Meanwhile, the trade deficit with China has doubled in the last five years to cross USD 100 billion. And Indian business is crippled by fear and oligopolisation that is leading many to resettle abroad,” he added.