Did PM Modi Say ‘GST Will Never Succeed’? Here’s The Truth Behind Viral Clip

A viral video shows Prime Minister Narendra Modi allegedly declaring that the Goods and Services Tax (GST) “will never succeed,” suggesting he once opposed the reform he now promotes. The clip surfaced shortly after PM Modi announced “GST Utsav,” celebrating recent tax rate cuts on a wide range of products that took effect on September 22.

In the video, the Prime Minister is purportedly heard saying, “As far as the GST is concerned, the BJP and Gujarat’s take is clear from the beginning itself. GST will never succeed.”

Also Read: Does This Viral Image Show A ‘Taliban-Style’ Seminar Conducted At Kerala’s CUSAT?

A reverse image search of keyframes led to a March 22, 2011 video on PM Narendra Modi’s official YouTube channel titled “Shri Narendra Modi replies PM Manmohan Singh on his remarks for Goods and Services Tax (GST).”

 In the full video, PM Modi clearly states from the 00:39 mark::

“As far as economic reform, GST are concerned, the BJP and Gujarat’s take is clear from the beginning itself. One year ago, I had a meeting with Mr Pranab Mukherjee, the Foreign Minister of India, in Gujarat. At that time, I had told him that until and unless he establishes an IT network, GST will never succeed. And he accepted my words. And in my presence, he had informed my principal secretary that a task force should be formed and an IT backup system should be set up immediately. Only then can GST succeed. He also agreed….”

The viral version cuts out the crucial condition, falsely making it appear as a rejection of GST.

The claim went viral in the backdrop of GST 2.0 taking effect from September 22, which aims to make essentials and mass-market products more affordable while raising levies on luxury and sin goods.

While the GST system marked its eighth anniversary on July 1, 2025, after replacing a web of indirect taxes with a unified framework, official data showed that gross GST collections for 2024–25 reached a record ₹22.08 lakh crore, reflecting a 9.4% year-on-year growth. However, collections slipped to a four-month low of ₹1.85 lakh crore in June 2025, still 6.2% higher than June 2024 but down 8.2% from May 2025 (full dataset on Dataful here). 

Also Read: Video Claiming To Show IAF Chief Admitting Loss Of S-400s During Conflict With Pakistan Is Doctored

PM Narendra Modi did not reject GST. His old statement warned that GST would fail without an IT network. The viral clip omits this context, and hence is misleading. 

Q1. Did PM Modi oppose the Goods and Services Tax?
No. He supported GST but stressed the need for a strong IT network for its success.

Q2. Why is the video viral now?
It resurfaced after the government announced GST Utsav, misleadingly suggesting a contradiction in PM Modi’s stance.

Q3. What was PM Modi’s actual recommendation?
He urged setting up an IT task force and digital infrastructure as a prerequisite for GST’s success.

Sources
YouTube Video By PM Narendra Modi, Dated March 22, 2011
Dataful By Factly