"Sensing mounting anger on the 'fake news' notification, the PM orders a U-Turn on his own order. One can clearly see a loss of control and panic setting in now," Mr Gandhi said in a tweet.
The government made a hasty retreat on Tuesday as PM Modi withdrew within hours his government's order that threatened to take away the accreditation of journalists involved in producing "fake news".
Journalists and opposition parties took a serious note of the order and described the guidelines as an attack on press freedom.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.