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Congress says US President Donald Trump threatening existence of GST, questions PM Modi’s stance

“As India integrates further into the global economy, there is growing recognition that import duties on alcohol need to be reduced to align with international standards,” Giri said.

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The Congress party on Wednesday raised concerns over U.S. President Donald Trump’s recent remarks on reciprocal tariffs, questioning whether the move could undermine India’s Goods and Services Tax (GST) system.

In a pointed statement, Congress general secretary Jairam Ramesh wondered if Prime Minister Narendra Modi, often referred to as a “Vishwaguru” (global leader), would stand up to protect India’s national sovereignty in the face of such challenges.

Ramesh emphasized that the Congress has long advocated for a revamped GST 2.0, aimed at simplifying the tax structure and making it truly “Good and Simple,” as originally intended. He called for minimizing tax rates and reforming compliance rules to ease the burden on businesses and consumers.

“By its very design, GST applies to imports but not exports, a principle that has never been disputed,” Ramesh said in a post on X (formerly Twitter). “Now, President Trump’s talk of reciprocal tariffs is calling into question the very existence of a consumption tax like GST. Beyond the WTO, this is a matter of national sovereignty. Will President Trump’s good friend in New Delhi, who often boasts of being a Vishwaguru, stand up to this?”

Ramesh also shared an article highlighting that Trump’s proposed tariffs are partly a response to what the U.S. describes as “unfair” taxes, including value-added taxes like Australia’s Goods and Services Tax. This has sparked fears that India’s GST system could face similar scrutiny.

The Congress leader’s remarks come amid recent developments in India-U.S. trade relations. Earlier this month, India reduced tariffs on bourbon whiskey from 150% to 100%, a move seen as a gesture to address U.S. concerns over high import duties. The decision, dated February 13 but gaining media attention on February 14, 2025, benefits American brands like Suntory’s Jim Beam.

During his meeting with Prime Minister Modi at the White House, President Trump criticized what he called “unfair” trade practices in India and outlined plans for reciprocal tariffs on countries imposing duties on U.S. imports. The tariff reduction on bourbon is viewed as a strategic step to ease tensions and pre-empt potential retaliatory measures.

Pratik Jain, a partner at PwC India, noted that the move signals India’s willingness to adjust tariffs for strategic partners. “It reflects the government’s intent to align its trade policies with global expectations,” he said.

However, India’s high tariffs on alcohol imports have long been a point of contention for foreign liquor companies, including Diageo and Pernod Ricard, which operate in the country’s $35 billion spirits market. Vinod Giri, director general of the Brewers Association of India, described the tariff reduction as a symbolic gesture to reassure the U.S. of India’s commitment to fair trade practices.

“As India integrates further into the global economy, there is growing recognition that import duties on alcohol need to be reduced to align with international standards,” Giri said.

The Congress’s critique of the government’s handling of the GST issue and its response to U.S. trade pressures underscores the broader debate over India’s economic policies and its stance on global trade. As the Modi administration navigates these challenges, the opposition’s call for a more robust and simplified GST system adds another layer to the ongoing discourse on India’s economic future.

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Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

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Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

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Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

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Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

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Rahul Gandhi and Vijay alliance took shape through backchannel talks, early signals from Congress leaders

Congress outreach and political calculations led to Rahul Gandhi and Vijay coming together after the Tamil Nadu 2026 election results.

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The coming together of Rahul Gandhi and actor-politician Vijay in Tamil Nadu after the 2026 Assembly elections was not sudden, but the result of behind-the-scenes political manoeuvring and early signals within the Congress.

According to media reports, some leaders in the Tamil Nadu Congress had already sensed the scale of Vijay’s surge during the campaign, anticipating what was later described as a “wave” in favour of his party.

After the results, where Vijay’s Tamilaga Vettri Kazhagam (TVK) emerged as the single largest party but fell short of a majority, communication channels between the Congress leadership and Vijay quickly became active.

A key moment in this evolving political equation was a phone call from Rahul Gandhi to Vijay, congratulating him on the party’s strong performance. The conversation was seen as more than a courtesy, signalling the possibility of cooperation at a time when government formation required additional support.

Reports indicate that discussions within Congress weighed the political benefits of supporting Vijay, especially given the shifting dynamics in the state where traditional dominance by major Dravidian parties has been challenged.

With TVK needing allies to cross the majority mark, Congress emerged as a potential partner, leading to a broader political realignment in the state. This development also triggered tensions within opposition alliances, highlighting the strategic importance of the decision.

The evolving partnership reflects a mix of electoral pragmatism and changing voter sentiment, particularly the growing influence of younger voters, which leaders acknowledged as a key factor in the election outcome.

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