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New GST rates: Congress, TMC welcome govt's ‘late’ revision; Jaishankar, Vaishnaw praise decision | Who said what
Opposition parties Congress and TMC have welcomed the “late” cuts to GST. Meanwhile, BJP leaders have praised the ‘next-gen’ reforms.
After the first day of the GST council meeting, the Indian government has revised and cut GST slabs and rates. The decision, which as per Finance Minister Nirmala Sitharaman is for the common man, has been welcomed by many leaders, including senior Congress leader P Chidambaram.
On Wednesday, the 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
Also Read | New GST rates: Full list of items that have received rate cut
In a post on X late Wednesday, the former finance minister and Rajya Sabha MP welcomed the Centre's recent GST rationalisation and rate cuts but questioned the decision as he questioned the eight year delay in the revision of GST.
Chidambaram said the current GST design and rates should not have been introduced in the first place, adding that the opposition had repeatedly warned the government against these issues for years.
"The GST rationalisation and the reduction in rates on a range of goods and services are WELCOME but 8 years TOO LATE. The current design of GST and the rates prevailing until today ought not to have been introduced in the first place. We have been crying hoarse for the last 8 years against the design and rates of GST, but our pleas fell on deaf ears," he wrote on X.
The Congress leader further questioned the government's timing for the reforms, speculating on the possible reasons behind the sudden change. These new GST rates come amid India's tariff row with the US.
US President Donald Trump has imposed a 50 percent tariff on Indian goods as part of his response to India buying Russian oil. Furthermore, the Congress leader also stated that the upcoming Bihar elections may have also influenced the decision of the government.
"It will be interesting to speculate on what drove the government to make the changes: Sluggish growth? Rising household debt? Falling household savings? Elections in Bihar? Mr Trump and his tariffs? All of the above?" he added.
New GST rates 'victory for common people', says TMC
The All India Trinamool Congress (TMC) also welcomed the revised rates and GST cuts as a "victory for common people" which was achieved after sustained pressure on the government.
The Mamata Banerjee-led party also slammed the BJP-led NDA government for being "tone-deaf" and only acting "when cornered".
"A victory wrested from a tone-deaf regime that only listens when forced. From day one, Smt. @MamataOfficial warned the Finance Minister that taxing insurance premiums was cruel, anti-people, and would deter families from securing their future, leaving them vulnerable to financial ruin in times of crisis. The @narendramodi Govt. has finally buckled under pressure. This rollback proves that @BJP4India only acts when cornered. We will continue to fight every such Jono-Birodhi decision, in Parliament, on the streets, among the people," the TMC said in a statement on X.
BJP leaders welcome ‘Next-Gen GST'
In a post on X, external affairs minister Dr S Jaishankar welcomed the new GST rates. Congratulating PM Narendra Modi and Finance Minister Nirmala Sitharaman, the EAM stated that the government's decision would enhance the ease of living and business in the country.
"Delivering on PM Narendra Modi's Independence Day announcement, the GST Council decision to adopt the NextGen GST today will have huge impact on the transformation story underway in India and the Government's effort to improve ease of living & doing business," said Jaishankar.
Railways Minister Ashwini Vaishnaw also hailed the decision and stated that the new GST will power PM Modi's vision of "Aatmanirbhar Bharat".
Sharing an X post, Vaishnaw wrote - "Historic Next-Gen GST Reforms. PM Narendra Modi Ji's gift for the coming festival season - cutting costs, easing lives, and powering Aatmanirbhar Bharat (self-reliant India)."
Union Health Minister JP Nadda also welcomed the decision, stating that the reduced tax rates will enhance ease of living and help families manage costs.
"Under the visionary leadership of Hon'ble PM Narendra Modi ji, the Union Government has announced the Next-Gen GST reforms to support ongoing growth and development. Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and bring relief to different sectors," Nadda wrote on social media.
