Effect of GST rate cuts on commodities neutralised by 'galloping' inflation: Congress

New Delhi: The Congress on Monday claimed the effect of GST rate cuts on various commodities is being neutralised by "galloping inflation", and said "headline" quarterly GDP numbers may give momentary elation to the ruling establishment but there are many faultlines in the India growth story that are not being acknowledged by Prime Minister Narendra Modi.

Congress general secretary in-charge communications Jairam Ramesh shared a screenshot of a media report which claimed that a year after GST rationalisation, higher commodity prices have eroded a large part of the gains with prices of several products -- from food to consumer goods and automobiles -- slowly inching up.

"The GST rate cuts in September 2025 were proclaimed to be game changers. They had, of course, been long overdue - but to boast of them as magic wands was hyperbole. In fact, their impact on boosting consumption has been mixed at best. For instance, automobile sales benefited while apparel sales did not," Ramesh said on X.


Now comes evidence that the effect of GST rate cuts on various commodities is being neutralised by "galloping inflation", the Congress general secretary said.

In many consumer goods, prices have returned to nearly the pre-GST cut level within a year without any meaningful consumption increase, Ramesh claimed.

"Headline quarterly GDP numbers may give momentary elation to the ruling establishment overlooking their imperfections, but there are many faultlines in the India growth story that are simply not being acknowledged by the PM and his brigade of cheerleaders," Ramesh said.

Neither is consumption buoyant across income segments nor is private investment booming, he said and added the real wages are on the decline.