GST Overhaul Sparks Political Row: Congress Hits With ‘1 Nation, 9 Taxes’ Jibe

Long Overdue But…’: Congress’ ‘1 Nation, 9 Taxes’ Jab Over GST Overhaul

The recent overhaul of the Goods and Services Tax (GST) system, announced after months of deliberation, was hailed by the government as a bold step toward simplifying India’s indirect tax regime. Rates on essentials such as toothpaste, soaps, household appliances, and small cars were reduced, while a new higher tax slab for luxury items was introduced. The government argued that these changes would ease inflation, boost consumption, and spur overall growth in the economy.

However, the announcement quickly took on a political dimension, with the Congress party launching a sharp attack on the revised framework. What was intended as a reform to benefit businesses and consumers soon became a battleground for contrasting narratives.

Congress’s “1 Nation, 9 Taxes” Jibe

Soon after the new slabs were introduced, Congress leaders accused the government of continuing to complicate the GST structure rather than simplifying it. The party coined the phrase “One Nation, Nine Taxes”, mocking the government’s long-standing slogan of “One Nation, One Tax.”

According to the Congress, the new regime still has multiple slabs—0%, 5%, 12%, 18%, 28%, and several special rates like 0.25%, 1.5%, 3%, and 6%—which, they argued, defeats the original vision of a uniform tax. The opposition stressed that a true simplification would mean a maximum of two or three slabs, capped at reasonable levels, so that compliance is easier for businesses and the burden on consumers is minimized.

“Eight Years Too Late” – Delay in Reform Questioned

Several senior Congress leaders welcomed the government’s decision to cut rates on essential items but criticized the delay in implementing them. They argued that for years, the common man, small traders, and farmers had been overburdened by high and uneven tax rates.

According to the opposition, if such reforms had been made earlier, India could have avoided years of unnecessary inflationary pressure and business slowdowns. One leader called the move “eight years too late”, pointing out that the party had consistently demanded capped rates since GST was introduced.

Demand for GST 2.0

While the government described the changes as a step forward, Congress labeled it a “half-measure” and coined the term “GST 1.5” to emphasize their view that the reform falls short of expectations.

The party reiterated its demand for “GST 2.0”, which, in its view, should be a simpler, more transparent, and truly uniform tax system. The Congress vision for GST 2.0 includes:

A single or dual-rate structure that eliminates confusion.
Compensation for states for revenue shortfalls to maintain federal balance.
Relief for MSMEs and small traders, who often struggle with compliance and filing complexities.
Focus on growth and equity, ensuring the tax system does not disproportionately burden the middle class and lower-income groups.

Markets Cheer, But Opposition Unmoved

Interestingly, markets responded positively to the overhaul. Shares of consumer goods companies, automobile manufacturers, and mid-cap firms surged following the announcement. Investors saw the reforms as a boost to demand ahead of the festive season.

However, the Congress maintained that while businesses may welcome short-term gains, the average consumer and small trader still face a complicated compliance environment. The opposition argued that rate cuts alone cannot address the structural flaws in GST unless the system is made fundamentally simpler.

The Political Dimension of GST

The GST has always been more than just an economic reform—it has carried deep political significance. Introduced as a landmark measure promising “One Nation, One Tax”, it was expected to revolutionize India’s taxation system. But over time, criticism has grown around its multiple slabs, frequent changes, and high compliance costs.

By branding the new reform as “One Nation, Nine Taxes”, Congress has managed to capture public attention with a slogan that highlights the persisting complexity. The ruling government, on the other hand, insists that flexibility in rates is necessary to balance fiscal needs with consumer welfare.

Looking Ahead: Relief or Missed Opportunity?

The GST overhaul is likely to bring some relief to households and businesses, but the political debate ensures that the discussion around India’s tax system is far from over. For the government, the move could translate into electoral goodwill if consumers see prices fall and demand picks up. For the opposition, it provides a fresh opportunity to push the demand for deeper reforms and to highlight gaps in the government’s economic policy.

Ultimately, the tussle over GST reflects a larger question: Should the focus be on short-term relief through rate cuts, or on long-term structural simplification that delivers a tax regime closer to the original promise of “One Nation, One Tax”?