Modi, Rahul square off on GST, state of the economy

The government and the main opposition squared off over the Goods and Services Tax on Thursday, with Prime Minister Narendra Modi hailing it as consumer-friendly and Congress vice-president Rahul Gandhi blaming it for unleashing “a tsunami of tax terrorism”.

India’s new indirect tax regime has emerged as a big election issue in Gujarat, with the main opposition party seeking to tap into the BJP’s traditional vote bank among traders and small businessmen by playing on their apprehensions about the ambitious tax reform that was rolled out to some teething problems in July. The Congress has made the NDA government’s handling of the economy its main poll plank, in a bid to end the BJP’s 22-year reign in the state.

Addressing an international conference in the national capital, Modi said that the rollout of GST has resulted in the abolition of dozens of indirect and hidden taxes.

“It is a transparent system in which no one can hurt the interests of consumers. Increased competition due to the GST will lead to moderation in prices. It will directly benefit poor and middle class consumers.”

Hours later, addressing the annual session of the PHD Chamber of Commerce and Industry in the capital, Rahul Gandhi said the GST is flawed in its structure and “punitive” in its design. It is forcing businesses to incur massive transaction costs that are destroying them, he added.

In the long term, GST will benefit only consumers. Consumers will not be cheated as they become more aware of this law... Due to GST, various indirect and hidden taxes have ceased to exist. NARENDRA MODI, Prime Minister

Their GST is wrecked with holes motheaten. Flawed in its struct Punitive in its design. It is forcing businesses to incur massive transacti costs that are destroying them. RAHUL GANDHI, Congress vice-president