New Delhi [India], September 22 : Congress Lok Sabha MP Manickam Tagore on Monday lashed out at YSR Congress Party president YS Jagan Mohan Reddy over the latter's appreciation of the recently announced and implemented Goods and Services Tax (GST) reforms while calling it "Modi's historic blunder" that was being corrected after seven years of damage.
"Mr Jagan calls GST restructuring "revolutionary." Let's be clear -- this is not a revolution. It's just Modi's historic GST blunder being corrected after 7 years of damage," Tagore posted on X.
"Instead of demanding justice for Andhra, Jagan praises Modi & Nirmala. Reforms correcting Delhi's mistakes are not revolutionary," he added.
Accusing the Narendra Modi government of "quietly admitting its mistakes", he pointed out the centre had taxed essentials at higher slabs while introducing GST in 2017.
"Taxed essentials at higher slabs. Created inverted duty structures that punished MSMEs. Starved states of revenue," Tagore said.
The Congress MP added that even after the restructuring of GST, the state governments risk losing Rs 1 to 1.5 lakh crore every year. He also flagged the issue faced by industries in Andhra Pradesh due to the "inverted duty structure".
"Centre itself admits Rs 48,000 crore shortfall. Who suffers? States like Andhra, already cash-strapped. Industries in AP textiles, plastics, small manufacturing still face inverted duty structure. Inputs taxed at 18 per cent, outputs at 5 per cent. No relief, no competitiveness," he stated.
Tagore further pointed out that essential items such as detergents, cosmetics, and cleaning items remain excluded from tax cuts. "For ordinary families, 'affordability' remains a slogan, not reality," he added.
His remarks come after former Andhra Pradesh Chief Minister Reddy on Monday hailed the centre for introducing rate cuts to GST, asserting that it would provide the "necessary impetus" to consumption and investment.
However, Congress MP Jairam Ramesh argued that his party has been "repeatedly" demanding reforms to GST for eight years, which the government ignored until US President Donald Trump imposed tariffs.
Yesterday, Prime Minister Modi announced the implementation of the next-generation GST reforms starting from today (September 22), marking what he called a major step towards the Aatmanirbhar Bharat Abhiyan.
Addressing the nation, PM Modi said the reforms would usher in a countrywide "GST Bachat Utsav," benefiting the poor, middle-class, farmers, traders, and entrepreneurs alike.
"From the sunrise of the very first day of Navratri, the nation is taking another important and major step towards the Aatmanirbhar Bharat Abhiyan. Tomorrow, on the first day of Navratri, September 22, along with the rising of Suryadev, the Next Generation GST Reforms will come into effect," he said.
The Prime Minister said that with the increased savings and easier purchases, the poor, middle class, farmers, women, traders and entrepreneurs of the country are all set to "benefit greatly."