In his third video series on the economic situation in the country, former Congress President Rahul Gandhi said GST was the second major attack on the unorganised economy after demonetisation. He had said in the first episode that the aim of demonetisation, GST and lockdown was destruction of informal sector.

He said the GST of UPA and NDA is different. “GST was UPA’s idea. One tax, minimal tax, standard and simple tax. NDA’s GST is completely different. Four different tax slabs, up to 28 per cent, complicated and difficult to understand.”

Gandhi said small and medium businesses cannot pay this tax.

“The big companies can easily pay it by putting 5-10-15 accountants to do the job. Why are there four different rates? This is because the government wants those who have the means to be able to easily change GST, and those who don’t have means, cannot do anything about it,” Gandhi said and added that only 15-20 biggest industrialists have the means for this. "So, whatever tax law they want to change can easily be done in this GST regime,” he said.

‘Absolute failure’

Gandhi said the Centre is unable to provide GST compensation to the States.

“The States are unable to give money to State employees, teachers, etc. Hence, this GST is an absolute failure. Not only is it unsuccessful, it is an attack on the poor and on the small and medium businesses,” he added.

“It is an attack on small shopkeepers, small and medium businesses, farmers and labourers. We have to recognise this attack and stand against it together,” he said.

Meanwhile, former Union Finance Minister P Chidambaram said some concrete steps to raise money are relaxing the FRBM norm and borrowing more this year, accelerating disinvestment, using the offer of $6.5 billion by IMF, World Bank, ADB and monetising part of the deficit as a last resort.

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