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On June 30, 2017, just before midnight, India witnessed one of its most dramatic economic announcements: the roll-out of the Goods and Services Tax (GST). Heralded as a “one nation, one tax” reform, GST was presented as a transformative step that would ease compliance, reduce corruption, and bring benefits to the poor and the middle class.
Fast forward eight years. On September 22, 2025, the Finance Minister Nirmala Sitharaman launched the so-called “Savings Festival,” accompanied by advertisements, announcements, and even a televised address by the Prime Minister. Prices of daily-use items—from soaps and toothbrushes to biscuits and tea—were promised to fall. But as always, the real question lingers: are ordinary Indians truly saving more, or is this just another headline-driven celebration?
Rahul Gandhi in Bhogal vs. Nirmala Sitharaman in Laxmi Nagar
The story begins in December 2024, when Rahul Gandhi visited a small grocery shop in Bhogal, Delhi. Sitting behind the counter, he listened to the shopkeepers narrating their struggles with GST. One trader compared it unfavorably to VAT, saying they were now paying four times more tax and spending half their working hours filing returns. Small businesses, already operating on razor-thin margins, felt crushed under compliance and costs.
Ten months later, in September 2025, Finance Minister Sitharaman visited the shops of Laxmi Nagar. Accompanied by two junior ministers, she distributed flowers, smiled for cameras, and heard selective feedback about the supposed benefits of the new GST rates. But unlike Gandhi, she did not sit down to hear the raw frustration of shopkeepers. The timing and optics left many asking: had the government finally begun listening, or was this just political theatre ahead of festivals?
GST’s Eight-Year Journey
When GST was launched, Prime Minister Modi assured the nation that this system would simplify taxation and benefit the poor. Yet the lived experience was different. Prices of essentials rose. Compliance burdens skyrocketed. Traders who once operated freely were forced into a maze of returns and invoices.
For eight years, opposition leaders like Rahul Gandhi repeatedly demanded course correction. They argued that high GST rates were inflating poverty, squeezing the middle class, and shrinking India’s consumption-driven economy. Their warnings went unheeded.
Only in 2025—eight years later—did the government announce massive rate cuts. Goods that once attracted 12% or 18% GST suddenly fell into the 5% slab. Some essentials like milk, curd, and paneer were exempted entirely. Personal care products, stationery, and packaged food items all saw reductions. The narrative shifted from “compliance and efficiency” to “celebrating savings.”
But this raises a haunting question: why did it take eight years of hardship before these cuts were made?
The “Savings Festival” or a PR Exercise?
The government declared September 22, 2025, as the start of a “Savings Festival.” Newspapers ran full-page ads thanking the Prime Minister. FMCG companies announced price cuts of ₹1 to ₹20 on biscuits, noodles, and tea packets. Insurance companies promised lower premiums. Hotels highlighted reduced GST on rooms, pitching tourism as more affordable.
And yet, reality was more complicated:
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Old stock still on shelves: Shopkeepers explained they could not sell products at new prices until old stock was cleared.
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Negligible savings: A ₹10 biscuit packet reduced to ₹9 may be important for the poor, but is it truly festival-worthy relief?
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State-level losses: With items moved into lower slabs, states now face revenue shortfalls. Andhra Pradesh alone estimated a ₹20,000 crore loss. How will they recover it? By raising other levies?
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Middle class squeeze: Reports show India’s middle class is shrinking. Even Nestlé’s CEO admitted FMCG sales are falling due to reduced purchasing power. If incomes aren’t rising, will small price cuts revive consumption?
The “festival” may therefore remain limited to headlines and advertisements rather than people’s wallets.
The Forgotten Promises of 2017
If one looks back at the headlines of July 2017, the déjà vu is striking. Then too, the government promised that soap, toothpaste, milk, medicines, and biscuits would become cheaper. Now, in September 2025, the same list of items is being read out again.
This repetition exposes a deeper problem: for eight years, ordinary Indians did not feel the promised relief. If the GST system was truly designed for the poor, why did it take almost a decade to reduce their burden?
The government insists that the new GST rates will deliver a “double bonanza” for the poor and middle class. But if a single bonanza was promised in 2017 and never materialized, can the public trust the double promise in 2025?
Health Insurance and the GST Narrative
Interestingly, alongside tax relief on daily goods, insurance companies are using this moment to advertise cheaper premiums. With GST on health and term insurance slashed, companies are wooing consumers with promises of affordability.
But here lies a contradiction: while insurance is indeed essential—covering hospital bills, securing families against financial shocks—its affordability is not determined only by tax. Household budgets, disposable incomes, and employment security matter far more. Without stronger economic fundamentals, GST relief on insurance may remain symbolic.
The Opposition’s Case
Congress leaders argue that GST has been “Gabbar Singh Tax”—a villain that robbed people of income and dignity. Rahul Gandhi consistently pressed for a standard 18% cap, a demand the government ignored until now. He also linked GST’s flaws to larger structural issues, such as India’s weak manufacturing sector compared to China.
His critique: GST widened inequality, burdened small traders, and hollowed out India’s middle class. And the government’s sudden embrace of rate cuts, in his view, proves that his warnings were always valid.
What Lies Ahead?
The GST “Savings Festival” arrives with fireworks, advertisements, and political symbolism. But the deeper questions remain:
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Are savings real or superficial?
Will a ₹5 or ₹10 reduction in consumer goods significantly improve monthly household budgets? -
How will states cope with revenue losses?
Will they raise other taxes to make up for reduced GST collections? -
Has India’s middle class already shrunk too much?
With stagnant wages and inflation eroding incomes, will lower GST rates revive demand? -
Is this a reform or a rebranding?
If the government itself admits that GST needed correction, does it also accept that the 2017 rollout was flawed?
Conclusion: Between Memory and Celebration
The government wants citizens to celebrate a “Savings Festival.” But perhaps what India really needs is a “Memory Festival.” A festival where citizens recall what was promised in 2017, compare it with what is being promised now, and judge for themselves what actually changed in eight years.
Savings are welcome. Relief is necessary. But without accountability, transparency, and honest reporting, festivals risk becoming spectacles. For a country where 80 crore people still rely on free ration, the question is not whether biscuits are ₹1 cheaper, but whether the economy has created jobs, raised incomes, and secured futures.
Until then, headlines may celebrate—but wallets will decide the truth.
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