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MK Stalin counters PM Modi over GST reforms: ‘50% of relief borne by states’
Tamil Nadu chief minister MK Stalin said that Opposition had been demanding these reforms from the beginning.
Tamil Nadu Chief Minister MK Stalin has criticised Prime Minister Narendra Modi over the rollout of Goods and Services Tax (GST) reforms saying that 50% of the relief to consumers is borne by the state governments.
“Moreover, it is our duty to point out that 50% of this relief has been actually borne by the State Governments, a fact which the Union has failed to acknowledge as well as appreciate,” Stalin said, adding that the Centre is denying funds that “rightfully” belong to the states.
“Tamil Nadu is being denied #SamagraShiksha funds only because we refuse to accept #HindiImposition. When will this injustice end?” DMK chief said on X.
While criticising Modi's statement that “Indians will save Rs. 2.5 lakh crore through GST reforms and income tax relief, Stalin said that this has been the Opposition's demand. “If these measures had been taken eight years ago, families across the country would already have saved many lakh crores more,” he said.
GST reforms were rolled out on September 22, the first day of navratri, with PM Modi terming it a “GST bachat utsav”. Under the GST reforms, the new system introduces a two-tier structure. Until now, GST had been levied across four tax slabs – 5%, 12%, 18%, and 28% – and included a compensation cess on luxury and “sin” goods.
In his address to the nation on Sunday, Prime Minister Narendra Modi said that Indians will save ₹2.5 lakh crore with the GST rate revisions, which come into effect today, in addition to the income tax reforms.
While describing it as “Bachat Utsav,” PM Modi said that reduced GST rates would provide relief to the poor and the neo-middle class.
“With these reforms the youth, farmers, women, shopkeepers, traders, entrepreneurs will all be able to benefit from this Bachat Utsav (savings festival),” PM Modi said, adding that people would be able to save more during the festive season.
Most goods and services will now be taxed at 5% or 18%, while ultra-luxury items or “sin” goods will face a 40% tax. Tobacco and related products remain in the 28% bracket, along with an additional cess.
GST rates have been reduced for daily-use items like snacks, coffee, ghee, paneer, butter, ketchup, jam, dry fruits, and ice cream. The GST on aspirational goods like TVs, air conditioners, and washing machines has also been reduced.
The taxes on medicines has also been brought down from 12% to 5%, with critical life-saving drugs for cancer, genetic and rare disease being exempted from the tax altogether. Almost 99% of the goods which earlier attracted 12% GST will now come under 5% tax slab.
