GST Reform 2025 / Changes in GST will provide a booster dose! Will the government earn political profit by bearing the economic loss?

GST Reform 2025: The Modi government at the Center has taken a big decision on the GST (Goods and Services Tax) front, reducing the four slabs to just two slabs - 5% and 18%. Many goods are expected to become cheaper with this change, which will provide great relief to the general public. This move of the government has come at a time when the assembly elections in Bihar are near.

Government's masterstroke or political ploy?

GST slab cut: Relief to the public

The Modi government at the Center has taken a big decision on the GST (Goods and Services Tax) front, reducing the four slabs to just two slabs - 5% and 18%. Many goods are expected to become cheaper with this change, which will provide great relief to the general public. This move of the government has come at a time when the assembly elections in Bihar are near. Although this decision is expected to reduce the government treasury by about Rs 48 thousand crore, the government has still taken this economic risk to provide relief to the public. Political analysts believe that even though it may cause economic loss, it can give political profit before Bihar elections.

Rahul Gandhi's Voter Rights Yatra

Congress MP Rahul Gandhi started the 'Voter Rights Yatra' to make people aware of their voting rights in Bihar. According to the claim of the Grand Alliance, this journey was very successful. Videos shared on social media showed a crowd of lakhs. Congress spokespersons say that this journey has infused new life in the party workers in Bihar.

Will GST relief overshadow Rahul's journey?

Amidst the discussion of Rahul Gandhi's journey, this GST decision of the government changed the attitude of social media and mainstream media. BJP workers became active and started calling it a big achievement of the government. PM Modi himself termed it 'GST 2.0' and said that it is a 'double dose' for the development of the country and public support. The benefit of this relief will start from September 22, i.e. Navratri, when Bihar elections will be closer. During this time, festivals like Diwali and Chhath will also be near, due to which the discussion of GST relief will increase among the people.

Will the issue of SIR and vote theft be marginalized?

Rahul Gandhi and the grand alliance are cornering the government on the issue of SIR (Systematic Interference in Registration) and vote theft. They allege that the Election Commission is working at the behest of the government and people's votes are being cut. Rahul also gave a presentation on this issue and targets the Election Commission almost daily. But after the announcement of relief in GST, the direction of the debate changed. The attack and counter-attack on SIR and vote theft has now become focused on GST. Congress re-shared Rahul's old posts, while BJP also retaliated sharply.

Union Minister Piyush Goyal, while responding to the criticism of the opposition, said that Congress is spreading negativity. He wrote on Instagram, "It is unfortunate that Rahul Gandhi ignores the 7.8% economic growth, which is proof of the world's fastest growing economy, and calls India a 'dead economy'. This is the negative thinking of some people, which I condemn." While the BJP will try to take the GST relief to every household in Bihar, the Congress will stick to the issue of SIR and vote theft.

Solution to the tariff and China issue

The government has been on the target of the opposition due to the deteriorating relations with the US due to the tariff dispute. The opposition kept cornering the government by resorting to the claims of US President Donald Trump. The increase in tariff had put the livelihood of many people in danger, but the GST relief has benefited everyone from the common man to the rich.

On the other hand, relations with China have seen improvement. Recently, PM Modi met Chinese President Xi Jinping at the SCO Summit. The Congress attacked the government over this and said that it is wrong to increase friendship with the soldiers whose lives were taken. But this move of GST gave the government an opportunity to counter attack.

Masterstroke on inflation and unemployment

Issues like inflation and unemployment have been a challenge for the government. The opposition has cornered the government on these issues many times in the last 11 years. These issues are also important in Bihar elections. But the relief in GST is being considered a masterstroke, which will benefit everyone from the poor to the rich, from the youth to the farmers.

Speeding up the economic cycle

The government has been trying to increase consumption for a long time. Income tax cuts were a part of it, but the impact of GST is more widespread. People will have more money left with cheaper goods, which will increase consumption. This will increase demand, increase production, increase investment and employment opportunities. This economic cycle will speed up the economy. The government has hit many targets with this one step.