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Kharge Criticizes GST Overhaul as Eight Years Late After Council Clears Rate Cuts

Congress president Mallikarjun Kharge calls the simplification overdue, urging full state compensation to offset revenue losses.

Overview

  • The GST Council approved a simplified structure that retains 5% and 18% slabs with a 40% rate for sin goods, moving many items previously at 12% and 28% into the main tiers.
  • Kharge said the government had only now “woken up” on reform after eight years, noting Congress had proposed a simpler GST in its 2019 and 2024 manifestos.
  • He argued the tax burden has fallen disproportionately on the poor and middle class, citing his figures of 64% of GST receipts from them versus 3% from billionaires, alongside lower corporate tax rates.
  • Pointing to levies on farm and household items, he repeated Congress’s label for the levy as the “Gabbar Singh Tax.”
  • He sought full compensation for states for five years using 2024–25 as the base year and pressed for easier compliance to genuinely help MSMEs.