Congress MP Warns GST Reforms Could Harm Small Businesses
While GST reforms aim to make essentials cheaper, Congress voices concern over impact on small traders.
NEW DELHI, Sept 22: As the new GST 2.0 rates came into effect on Monday, Congress MP Imran Masood criticized the government, warning that the reforms, touted as a boost to the economy, may instead jeopardize small businesses.
Masood said, “When the government announced these reforms, they claimed it would boost the economy. However, by doing so, they have ruined small businessmen.” He added that the country is grappling with the “repercussions of reckless and poorly thought-out decisions.”
The remarks came as the next-generation GST reforms aimed to reduce taxes on food, hotels, cars, bikes, and daily essentials while streamlining tax slabs to 5% and 18%. Items such as chapati, parathas, milk, paneer, khakhra, pizza bread, butter, ghee, sausages, ice cream, coffee, juices, dry fruits, cheese, meats, confectionery, jams, biscuits, and breakfast cereals will now see lower taxes or exemptions.
Prime Minister Narendra Modi described the rollout of GST 2.0 as the start of a “GST Savings Festival,” framing it as a step toward economic self-reliance and promotion of Swadeshi goods. While essentials and many big-ticket items are now more affordable, sin goods like tobacco and soft drinks remain taxed at 40%.
Masood also referenced the ongoing US H-1B visa fee issue, saying he had expected the Prime Minister to address the move that has caused significant economic concerns for Indian professionals.
