HomeColumnsGST Rate Cuts Misleading, Benefit Tilted Towards Corporates: CPI(M) Leader Rajesh Singhvi

GST Rate Cuts Misleading, Benefit Tilted Towards Corporates: CPI(M) Leader Rajesh Singhvi

Reacting sharply to the recent changes in Goods and Services Tax (GST) rates, CPI(M) District Secretary and former councillor Rajesh Singhvi said that the announcement is more of a “cosmetic exercise” than a genuine relief for the common man.

Singhvi compared the move to the proverb “An elephant has two sets of teeth — one for show, another for use,” arguing that while the government projects certain goods becoming cheaper, the reality will not benefit ordinary citizens.

He said the media, with government backing, will publish GST charts and slabs to show that items have become cheaper. However, the corporate sector will increase the base price of those goods, ensuring that market prices remain unchanged despite the tax cuts.

Raising concerns over selective relief, Singhvi pointed out that no GST reduction has been made on essentials for farmers such as fertilizers, seeds, and irrigation equipment. Similarly, women’s necessities like cosmetics, sanitary napkins, and kitchen appliances remain taxed at the same rates. Children’s school bags and shoes, which continue to attract 18% GST, have also been ignored.

“Small traders are still burdened with complicated GST return filings and issues related to input credit, with no reforms in sight,” Singhvi added.

He further argued that the changes would ultimately benefit large corporations rather than common citizens, while also impacting the financial health of states.

Criticising the government’s stance, Singhvi said, “The same government that talks about ‘One Nation, One Tax’ has deliberately kept petrol and diesel outside the ambit of GST. This allows it to continue burdening people and looting their pockets.”

However, Singhvi acknowledged two positives in the new GST changes: the removal of 18% GST on insurance premiums, which will make policies cheaper, and lower tax on hotels and OYO rooms, offering some relief to travellers.

Read More: Govt. Unveils Next-Gen GST: The Two-Slab Revolution to Boost Ease of Doing Business

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
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