NEW DELHI: Former Finance Minster P Chidambaram in a late-night sarcastic tweet said the Modi government had “learnt its lesson belatedly” and that the Congress and he stood “vindicated” after the Goods and Services Tax Council today massively pruned the list of products attracting 28 per cent tax.
“When GST rate is capped at 18%, this Govt would have learnt its lesson belatedly,” P Chidamabaram tweeted, referring to the GST Council cutting the number of items attracting the top 28 per cent tax rate to just 50 from 228 previously.
When GST rate is capped at 18%, this Govt would have learnt its lesson belatedly.
— P. Chidambaram (@PChidambaram_IN) November 10, 2017
“Congress is vindicated. I am vindicated. The merit of capping GST at 18% is now recognised,” Chidamabaram went on to say, before delivering his denouement: “Thank you Gujarat. Your elections did what Parliament and common sense could not do.”
Thank you Gujarat. Your elections did what Parliament and common sense could not do.
— P. Chidambaram (@PChidambaram_IN) November 10, 2017
The former Finance Minister, whose party has sharply attacked the Modi government over the implementation of the Goods and Services Tax, seemed to be suggesting that the Centre carried out the GST revision in order to further the Bharatiya Janata Party’s chances in poll-bound Gujarat.
Gujarat, which has a larger trader population, has almost become a referendum on the Modi government’s economic policies, with the Congress turning both demonetisation and the GST roll-out a poll issue.
GST REVISION
Earlier today, the all-powerful GST Council, headed by Finance Minister Arun Jaitley, announced major changes to how products and services will be taxed under the GST regime.
After the GST revision, the 28 per cent tax rate bracket, which previously had 228 items, now has just 50 mostly luxury and sin products.
The top tax rate is now restricted to luxury and demerit goods like pan masala, aerated water and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dish washing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yacht.
Chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo and deodorants and washing powder detergent are some of the items that will now attract a lower 18 per cent rate. These items were earlier taxed at 28 per cent.
Addressing the media after the Council Meet in Guwahati, Finance Minister Jaitley said that 178 items have been moved from 28 per cent slab to the 18 per cent GST bracket. The GST revision also brought relief for restaurants, with Jaitley saying that a uniform 5 per cent rate will be levied on all eateries, both air-conditioned and non-AC.
“Consumers will be benefited by lower prices as most of the taxable items are in the 5 per cent, 12 per cent or 18 per cent slabs,” Jaitley said.
(With inputs from PTI)