Tamil Nadu Chief Minister MK Stalin strongly criticised Prime Minister Narendra Modi over the recent rollout of Goods and Services Tax (GST) reforms. He said that states are bearing half of the financial burden to provide relief to consumers.

“Moreover, it is our duty to point out that 50% of this relief has been actually borne by the State Governments, a fact which the Union has failed to acknowledge as well as appreciate,” Stalin said. He accused the Centre of ignoring states’ efforts while claiming credit for the reforms.

Funds Denied to Tamil Nadu

Stalin further alleged that the Centre is withholding funds from Tamil Nadu.“Tamil Nadu is being denied #SamagraShiksha funds only because  we refuse to accept #HindiImposition. When will this injustice end?” he wrote on X. He argued that this discrimination is hurting the state’s development initiatives.

PM Modi Promotes GST Reforms as 'Bachat Utsav'

The GST reforms were launched on September 22, the first day of Navratri. PM Modi described the rollout as a “GST Bachat Utsav,” or a savings festival. In his address to the nation, Modi said the revised GST rates would save Indians ₹2.5 lakh crore and provide relief to the poor and middle-class families. “With these reforms, the youth, farmers, women, shopkeepers, traders, and entrepreneurs will all be able to benefit,” Modi said.

Changes in GST Structure

Earlier, GST was divided into four slabs – 5%, 12%, 18%, and 28%, along with a compensation cess on luxury and sin goods. However, the new system now has two primary slabs – 5% and 18%. Ultra-luxury and sin goods will face a 40% tax, while tobacco products will stay at 28% plus cess.

Reduced Taxes on Essentials

The government has lowered taxes on many daily-use items, such as ghee, paneer, butter, coffee, snacks, ketchup, jam, ice cream, and dry fruits. Taxes on medicines have also been slashed from 12% to 5%. Life-saving drugs for cancer, genetic disorders, and rare diseases are now completely tax-free. Almost 99% of goods previously under the 12% slab have now moved to the 5% category.

Stalin Counters Modi’s Claims

Stalin argued that these reforms were long overdue. He said, “If these measures had been taken eight years ago, families across the country would already have saved many lakh crores more.” By highlighting these points, Stalin accused the Centre of denying states their rightful share while taking credit for the relief.