MPCC asks Centre to review GST framework
Source: The Sangai Express

Imphal, August 08 2025: Manipur Pradesh Congress Committee (MPCC) president K Meghachandra has urged the Central Government to review the Goods and Services Tax (GST) framework and create a different tax slab for economically backward and geographically isolated States like Manipur.

In a press note, Meghachandra who is the MLA of Wangkhem AC, said that GST which was implemented in 2017 poses significant challenges for States like Manipur whose economic and infrastructural conditions are vastly different from mainland India.

Saying that GST stripped the power of the States to levy independent taxes like VAT and entry tax, he added that the 'one size fits all' approach of GST does not serve the interests of small, landlocked and socioeconomically fragile States like Manipur.

He also said that the GST model has resulted in increased hardship for small businesses, higher consumer prices, diminished State revenue and autonomy, weak digital compliance and systemic neglect of local economic conditions in Manipur.

Local industries, artisans and fanners who earlier benefited from tax exemptions are now burdened by uniform GST slabs, the Congress leader said.

He elaborated that items like handloom products, bamboo crafts and small scale goods now fall under taxable categories thereby raising prices and reducing competitiveness.

He also said that GST is an online based system but many parts of Manipur still don't have adequate digital infrastructure.

Small traders, shopkeepers and rural entrepreneurs are unable to comply due to poor internet connectivity and limited digital literacy, he added.

Continuing that applying the same tax rates across metros and remote hill districts fails to recognise the logistical and economic hardships in regions like Manipur, Meghachandra maintained that GST creates a sense of exclusion and economic injustice.

Citing all the factors, the Congress leader urged the Government of India and the GST Council to review and amend the GST framework, restore fiscal space for small States, ensure timely compensation payment, introduce simplified compliance mechanisms for small traders and create different tax slabs for economically backward and geographically isolated States like Manipur.

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