'Congress even taxed children's toffees': PM Modi slams Opposition for criticising GST overhaul

This comes after the rationalization of Goods and Services Tax was criticised by the Congress, which called it eight years too late.

The opposition party raised questions about what prompted this sudden move, speculating about multiple issues, including the upcoming assembly elections in Bihar and the 50 per cent tariff imposed by US President Donald Trump.

Responding to their charges, PM Modi said: "Before I came in 2014, whether it was kitchen utensils or agricultural things, or medicines, and even life insurance, the Congress government took different taxes on such various things."

"Toothpaste, soap, hair oil - 27% tax on them. 18 to 28 per cent tax on food plates, cup plates, spoons. Tooth powder -- 17% tax...  The condition was that the Congress people used to take 21% tax on children's toffees," he said.  

"Before 2014, the farmer's farm was more expensive and the profit was very less. The reason was that the Congress government used to collect a lot of tax on the agricultural goods," he added.

The PM said people will start benefiting from first day of Navratri. "This time, Dhanteras will be more vibrant. This is the biggest reform of independent India," he added.  

He underscored the transformative impact of the latest GST reforms on India’s manufacturing sector.

"The #NextGenGST initiative introduces simplified tax slabs, streamlined digital compliance, and cost efficiencies that are set to significantly boost domestic production and competitiveness," he said, addressing an event.

Finance minister Nirmala Sitharaman on Wednesday announced sweeping rate cuts after the GST Council approved a new two-slab structure of 5% and 18%.

Crucial items, including life and medical insurance, life-saving drugs and food items including dairy products and bread, have been made tax free.

"I had promised the people of the country that this Diwali would bring a double bonanza... People will start benefiting from first day of Navratri. This time, Dhanteras will be more vibrant. This is the biggest reform of Independent India," PM Modi said.

The Congress has provided a mixed response to the central government's major overhauling of the GST regime, which now has two main slabs instead of the previous four, media reports said.

Congress general secretary Jairam Ramesh slammed the Modi government over the previous four slabs of GST.

Ramesh said the Congress had referred to the flawed GST 1.0 way back in 2017 but Prime Minister Narendra Modi allegedly did not pay attention to it.

He has also questioned the functionality of the GST Council as the skeleton of the new regime was spelled out by the Prime Minister during his Independence Day address on August 15.