Dear GST Council,

As a concerned citizen and a taxpayer of this great nation, I find myself compelled to address the recent GST revisions made during the 55th GST Council meeting held on December 21, 2024. While I understand that the government‘s primary goal with the Goods and Services Tax (GST) system is to streamline taxation and promote economic growth, I must express my deep concern about how these changes impact the daily lives of common people like myself.

The most recent GST changes, though designed with noble intentions, have the potential to significantly affect middle-class families, individuals, and the average consumer. In a country where the majority of the population depends on essential goods and services for their daily survival, the latest revisions are a cause for concern. The impact of these changes must be weighed carefully, as it is the common man who bears the brunt of such decisions.

The Impact of GST Revisions on the Common Man

Let me highlight a few of the key decisions that have raised concerns among us:

1. Reduced GST on Fortified Rice Kernel (FRK)

While the reduction in GST on FRK from 12% to 5% may seem like a positive step toward addressing malnutrition, especially in rural areas, the reality is that the common citizen may not immediately benefit from this. The accessibility of FRK products, particularly in remote and underdeveloped regions, remains a critical concern. How can we ensure that these reductions translate into tangible benefits for those who need it the most?

2. Increased GST on Used and Old Vehicles

The GST increase on old and used vehicles, including electric vehicles (EVs), from 12% to 18% is perhaps the most concerning of all the recent changes. In a nation where personal transportation is often a necessity, particularly for the working class, this hike will increase the price of already unaffordable vehicles. For many families, buying a used vehicle is a practical choice, and this decision places additional financial pressure on those who are already struggling to make ends meet.

3. Exemption of Gene Therapy from GST

On a more positive note, the exemption of gene therapy products and services from GST is a welcome move. It has the potential to make life-saving treatments more affordable and accessible to people suffering from rare diseases. However, the larger question remains: How will the government ensure that such exemptions lead to tangible benefits for patients and not just increased accessibility in urban centers?

4. Tax Clarification on Popcorn

The 55th GST Council meeting if described in a few words can be termed as The POPCORN MESS: Plain, Salty, Caramelized yet Bitter. While popcorn may seem like an insignificant item to tax, the clarification that popcorn—whether pre-packaged or loose—attracts a GST rate of 5% adds to the growing list of small, but significant, cost increases that everyday people are now facing. In an era of rising inflation, such revisions might not seem like much, but when added up, they significantly affect the disposable income of middle-class families.

5. Other Measures

Discussions around aviation turbine fuel (ATF) and the extension of compensation cess on certain goods have the potential to drive up prices in other sectors, especially in transportation and travel. The common man often finds himself caught in the ripple effect of such measures. Will these costs be passed down to consumers?

A Call for Thoughtful Reforms

As a taxpayer, I urge the GST Council to consider the broader implications of these changes on the everyday Indian. The rising cost of living is already a major concern for the common man. While economic reforms are necessary, they should not come at the expense of affordability and accessibility for the vast majority of citizens. We need reforms that are inclusive and mindful of the needs of the common people.

In light of these concerns, I would like to request the following:

1. Reconsideration of GST Hikes on Used Vehicles

With millions relying on used vehicles for transportation, a hike in GST on these vehicles will put an undue burden on middle-class families. A reconsideration of this hike, or at least a targeted reduction, could go a long way in easing the financial pressure on citizens.

2. Simplification of GST for Everyday Goods

The tax on everyday products such as popcorn, while seemingly small, adds up over time. We urge the Council to simplify the tax structure for commonly used goods, ensuring that the tax burden on the average citizen is minimized.

3. Focus on Inclusive Policies for All Sectors

The Council should ensure that any changes made to the GST system benefit all sectors equally, including healthcare, agriculture, and transportation, without disproportionately burdening the common man.

4. Monitor the Real-World Impact of Revisions

The GST system should be regularly monitored to ensure that businesses pass on the benefits of reduced taxes to consumers, rather than using these changes as an opportunity to increase prices.

5. Public Awareness of Reforms

While the GST Council is making strides toward tax reforms, there is a pressing need to educate the public on how these changes will impact them. Transparent communication will help citizens better navigate these revisions.

Conclusion: A Plea for Compassionate Reforms

In conclusion, while the intentions behind the recent GST revisions may be sound, it is crucial for the GST Council to consider the real-world impact on the common man. We, the taxpayers, are the backbone of this country, and it is essential that any reform or change be weighed with our interests in mind. We trust that the GST Council will make decisions that do not inadvertently harm those who can least afford it and will take steps to make life easier, not more difficult, for the average Indian.

Sincerely, 
A Concerned Citizen and Taxpayer

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