Modi Acclaims GST Council Reforms as a Progression Toward the Future Generation, Opposition Raises Concerns over the Delayed Implementation

GST Council Announces Sweeping Changes to Indirect Tax Regime

The GST Council, comprising the Centre and the states, has collectively agreed to sweeping changes in the indirect tax regime following a 10.5-hour meeting. The changes are designed to ease the burden on citizens and drive economic growth.

The new two-tier GST rate is 5% and 18%. Televisions will now attract the new 18% GST rate, while life-saving cancer medicines remain exempt. On the other hand, cigarettes and paan masala will face a 40% GST rate.

Former Rajya Sabha MP P. Chidambaram welcomed the Centre's GST rationalisation and rate cuts, but questioned the timing of the changes brought. He also questioned the eight-year delay in revising the indirect tax regime.

The All India Trinamool Congress (TMC) welcomed the revised GST rates and tax cuts, describing it as a "victory for common people" achieved after sustained pressure on the government. However, they noted that the rollback is an indicator that the BJP only acts when cornered. They specifically questioned the taxation of insurance premiums, calling it cruel and anti-people.

The TMC stated that Mamata Banerjee had warned the Finance Minister that such a move would be detrimental to the public, leaving families vulnerable to financial ruin in times of crisis. The Bharatiya Janata Party-led National Democratic Alliance government was accused of being "tone-deaf" to public concerns.

The compensation cess on tobacco products has been extended until GST compensation loans are repaid. This move is aimed at correcting the inverted duty structure.

External Affairs Minister S. Jaishankar also welcomed the GST rationalisation, praising the Council for its efforts to simplify the tax structure.

Chidambaram speculated that sluggish growth, rising household debt, falling household savings, elections in Bihar, Mr. Trump and his tariffs, or a combination of these factors might have driven the government to make the changes.

The TMC accused the government of being "tone-deaf" to public concerns and acting "only when cornered." They reiterated that the changes are a step in the right direction but urged the government to continue listening to the voices of the people.

Modi Acclaims GST Council Reforms as a Progression Toward the Future Generation, Opposition Raises Concerns over the Delayed Implementation