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Modi Says Himachal Taxes Undercut GST 2.0 Relief as Congress Flags Price Hikes

Congress leaders demand enforcement to ensure rate cuts reach consumers.

Overview

  • India’s GST 2.0 took effect on September 22 with a two-rate structure of 5% and 18% and lower levies on many goods and services.
  • Speaking in Jharsuguda, Prime Minister Narendra Modi alleged the Congress government in Himachal Pradesh imposed a new cement tax and added levies after fuel price cuts, blocking intended relief.
  • Himachal BJP chief Rajeev Bindal listed recent state measures, including a Rs 7.50 per litre hike in diesel VAT and an increase in Additional Goods Tax on cement from Rs 7.50 to Rs 16, alongside other fees and cesses.
  • Congress leader Jairam Ramesh cited a media report claiming some companies raised prices by up to 10% around the GST changes, arguing that consumers are not receiving promised benefits.
  • Ramesh called for a monitoring mechanism to enforce pass-through of tax cuts and proposed a compensation framework to protect state revenues under the new rates.