The current structure of the Goods and services Tax (GST) in india has sparked significant criticism for its skewed definition of what constitutes a "luxury." Essential items that directly affect the daily lives of the average citizen—like mineral water (18% GST), health insurance (18%), cement (28%), and even motorcycles (28%)—are taxed at rates that suggest they are indulgences, not necessities. In reality, these items form the backbone of middle-class survival and economic mobility. Clean drinking water is a basic human right, health insurance is crucial in a country with rising medical costs, and cement is fundamental to building homes—yet all are taxed heavily under the current GST regime.
The irony becomes glaring when one compares this with the taxation of gold and diamond jewellery, which attract a mere 3% GST. These are undoubtedly luxury items, primarily consumed by the affluent. Instead of levying higher taxes on such wealth-signifying commodities, the government has chosen to place a disproportionately high tax burden on goods and services that impact the working class and lower middle class the most. This upside-down logic reflects a governance mindset that seems more focused on revenue extraction from the masses than on promoting fairness or economic equity. It raises a serious question: who is the GST really designed to serve?
If this approach continues unchecked, it won't be surprising to see basic necessities further taxed under the guise of revenue generation. Such a regressive tax structure not only widens the gap between the rich and the poor but also undermines the very idea of inclusive growth. True governance should prioritize access to essentials, not penalize them. By labeling fundamental needs as “luxury” items, the system risks alienating the very citizens it claims to serve. GST, in its current form, needs urgent rationalization—a shift that acknowledges and protects the basic rights and needs of the common man, rather than shielding the elite from their fair share of contribution.
The irony becomes glaring when one compares this with the taxation of gold and diamond jewellery, which attract a mere 3% GST. These are undoubtedly luxury items, primarily consumed by the affluent. Instead of levying higher taxes on such wealth-signifying commodities, the government has chosen to place a disproportionately high tax burden on goods and services that impact the working class and lower middle class the most. This upside-down logic reflects a governance mindset that seems more focused on revenue extraction from the masses than on promoting fairness or economic equity. It raises a serious question: who is the GST really designed to serve?
If this approach continues unchecked, it won't be surprising to see basic necessities further taxed under the guise of revenue generation. Such a regressive tax structure not only widens the gap between the rich and the poor but also undermines the very idea of inclusive growth. True governance should prioritize access to essentials, not penalize them. By labeling fundamental needs as “luxury” items, the system risks alienating the very citizens it claims to serve. GST, in its current form, needs urgent rationalization—a shift that acknowledges and protects the basic rights and needs of the common man, rather than shielding the elite from their fair share of contribution.
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