Congress Calls for a Simplified GST Ahead of the Budget: Here’s What You Need to Know

The Goods and Services Tax (GST) has long been a topic of debate in India, especially when it comes to its impact on the average taxpayer. Ahead of the Union budget, Congress has raised a crucial concern: the need for a simplified GST. The argument is clear—GST is becoming increasingly complicated, and it is burdening the middle and lower-income groups, making life harder for businesses and consumers alike. So, let’s break down what’s happening and why this issue is so important.

Why is Congress Calling for a Simplified GST?

The main reason Congress is calling for a simplified GST is the complexity it brings to businesses and taxpayers. India currently has nine different GST rates, which, as you can imagine, creates confusion and difficulties for businesses trying to comply with tax regulations. Congress claims that the Modi government has turned GST into a tax that disproportionately affects the poor and middle class. It’s not just about the rates—it’s about the impact these rates have on everyone’s pockets.

In a statement by Congress President Mallikarjun Kharge, he made it clear that despite what the BJP calls it, the current system is far from being “Good and Simple.” Instead, it’s become a source of frustration for many citizens, especially those who are already struggling with rising costs. If you think about it, when the tax system is too complex, it leads to delays, confusion, and sometimes, unintentional errors in filing. The result? Increased stress for taxpayers, businesses, and even tax professionals who have to navigate these complicated rules.

A New Name, Same Struggles?

During a press conference in Jaipur, AICC spokesperson Pawan Khera referred to GST as the "Gabbar Sitharaman tax." Now, that’s quite a bold statement, but it reflects the frustration many people feel. He even went as far as calling Prime Minister Narendra Modi the “biggest coward,” calling out the government’s failure to address the problems caused by the current GST system. The idea here is that the government may change the name or tweak a few policies, but the core issue of complexity remains unresolved.

Khera, alongside other AICC leaders, has been pushing the BJP government to take action. They’ve held press conferences across 12 cities to amplify the message. Why? Because there’s a growing concern about an economic slowdown. Businesses are facing tough times, and taxpayers, especially from the lower-income groups, are feeling the pinch more than ever. It’s clear: something needs to change, and soon.

The Impact on the Common Citizen

While Congress continues to raise concerns about GST, it’s important to understand the real-world impact of these issues. Take, for example, Rajasthan’s Deputy Chief Minister, Sachin Pilot, who spoke out about how GST has affected the middle class. He pointed out that GST was initially intended to broaden the tax base when it was envisioned by the UPA government. However, the implementation has had the opposite effect, benefiting only a small percentage of the population.

In fact, Pilot highlights some startling statistics about GST revenue distribution. According to him, around 64% of GST revenue comes from the bottom 50% of the population, while the wealthiest 10% contribute a mere 3%. So, the real burden of GST is falling on those who can least afford it, while the billionaires are getting off lightly. This is not just an economic concern—it’s a social one.

The middle class, which is already grappling with rising costs of living, is now expected to bear the weight of a tax system that seems to overlook their struggles. The latest figures from 2021-22 reveal that a significant portion of GST revenue comes from working professionals, small businesses, and the everyday citizen. The top 10%—the wealthiest in society—contribute only a tiny fraction of what the middle and lower-income groups pay.

Is GST Really Working for India?

A key criticism of the current GST system is how it impacts essential goods and services. The fact that 36 agricultural products are subject to GST and that an 18% tax is levied on life and health insurance premiums adds salt to the wound. These are basic needs, yet the tax burden is affecting everyone across the spectrum. For a country like India, where a large percentage of the population depends on agriculture and essential services, the GST system should be more considerate of these realities.

What’s worse is that the government seems to be celebrating record GST collections without addressing the core issue: who’s paying the price for these collections? As Congress points out, while the government may be happy about the revenue, it’s the people who are struggling with the consequences.

What’s Next for GST?

With the Union Budget on the horizon, the pressure is mounting on the government to simplify GST and make it more equitable for all. The people have spoken, and it’s time for the government to listen. Congress has clearly laid out its stance, urging the government to reconsider the current GST system and make it less burdensome for taxpayers and businesses alike.

So, as we look toward the future, one thing is clear—GST in its current form isn’t serving everyone equally. The call for a simplified system isn’t just political rhetoric; it’s a real demand from those who are feeling the effects of this complicated tax system every day. It’s time for a change that benefits all, not just a select few.

If you’re looking for professional help with your GST-related concerns, feel free to reach out to us for expert tax and audit services. We can assist with everything from GST filing to tax planning, making sure your business stays compliant without the added stress!