Congress says inflation eroding impact of GST rate cuts

The Congress on Monday said the benefits of last year's GST rate cuts on a range of commodities were being worn away by inflation, claiming that prices of several consumer products had climbed back to near pre-cut levels within a year.

In a post on X, party general secretary (communications) Jairam Ramesh described the GST rationalisation announced in September 2025 as long overdue, but argued that presenting it as a transformative measure was an overstatement. He said its effect on consumption had been uneven at best, pointing to automobile sales as a segment that gained while apparel sales did not.

Mr. Ramesh said fresh evidence suggested that the impact of the rate reductions on various commodities was being neutralised by what he called galloping inflation. He claimed that prices of several consumer goods had returned to almost their pre-cut levels within a year, without any meaningful rise in consumption.

He tied the argument to a wider critique of the government's economic messaging, saying headline quarterly GDP figures could offer only momentary satisfaction while overlooking underlying weaknesses. According to him, consumption is not buoyant across income segments, private investment is not booming, and real wages are declining.

The remarks add to the ongoing political debate over the efficacy of the GST overhaul, with the opposition questioning whether the tax changes have translated into sustained relief for households.