The BJP and its allies hailed the decision as a “big gift” for the middle class. Prime Minister Narendra Modi stated that the GST reforms aim to ease living for the common man and strengthen the economy.
Photo: IANS
The Goods and Services Tax (GST) Council’s recent decision to overhaul the indirect tax regime elicited varied responses from both the ruling and opposition parties on Thursday. The council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday approved a dual tax rate structure of 5 per cent and 18 per cent, effective September 22, simplifying the existing four-tier structure.
The BJP and its allies hailed the decision as a “big gift” for the middle class. Prime Minister Narendra Modi stated that the GST reforms aim to ease living for the common man and strengthen the economy. Union Home Minister Amit Shah described the decision as “historic,” saying it will bring “huge relief” to the poor, middle class, farmers, MSMEs, women, and youth.
Advertisement
Union Commerce and Industry Minister Piyush Goyal, welcoming the new reforms, shared a post on X stating that the GST Council’s decision is aimed at promoting ease of living and supporting farmers, MSMEs, the middle class, women, and youth. “PM Narendra Modi ji’s historic Diwali gift for all! Heartiest congratulations to PM Modi ji and FM Nirmala Sitharaman ji on the introduction of the Next Gen GST reforms, duly supported by the GST Council in line with the Union Government’s proposals on GST rate cuts and reforms,” he said.
Advertisement
Railway Minister Ashwini Vaishnaw wrote on X, “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 and BJP President JP Nadda said that the reduced tax rates will enhance ease of living and help families manage costs.
BJP Delhi President Virendra Sachdeva said the promise made by PM Modi during his Independence Day address has now been fulfilled, with household items becoming cheaper. Maharashtra CM Devendra Fadnavis lauded the move to remove the 12 per cent and 28 per cent GST slabs, calling it “historic.”
Chief Ministers across NDA-ruled states, including Uttar Pradesh’s Yogi Adityanath and Assam’s Himanta Biswa Sarma, welcomed the GST reforms, citing benefits for citizens and entrepreneurs.
Backing the tax reforms, Delhi CM Rekha Gupta said that PM Modi fulfilled the promise he made on August 15 regarding the tax reforms, calling it “historic.”
Andhra Pradesh Chief Minister N Chandrababu Naidu said: ”We welcome the GST reforms with revised slabs across daily essentials, education, healthcare, and agriculture. This pro-poor, growth-oriented decision will benefit all sections of society, from farmers to businesses.”
JD(U) national spokesperson Rajeev Ranjan described the changes as a “bumper” gift ahead of the festive season. He said, “This is not only a bumper Diwali gift for middle-class people but also for the lower-middle class, especially the homemakers of our country. Farmers will also benefit a lot after these reforms. Amid US tariff impositions, our traders will benefit a lot, as now they will be able to sell their goods to the people at lower rates.”
The Congress party, however, criticised the government’s implementation of GST, calling it “Gabbar Singh Tax.” Congress president Mallikarjun Kharge said the party had been demanding simplification of GST for nearly a decade and that the current design and rates were flawed.
Kharge demanded that all states should be given compensation for a period of 5 years to protect their revenues from the adverse impact of rate rationalization. Jairam Ramesh questioned the role of the GST Council, saying its decisions seem to be a formality given the PM’s prior announcement.
Former Finance Minister P Chidambaram welcomed the GST rationalization but said it was “8 years too late.”
Congress leader Jairam Ramesh questioned the role of the GST Council after Prime Minister Narendra Modi announced GST reforms during his Independence Day speech on August 15, before the council’s meeting. Ramesh said that the council’s decisions seem to be a formality, given the PM’s prior announcement.
“Is the GST Council to be reduced to a formality?” Jairam Ramesh asked in a post on handle X, highlighting that the council’s role seems to be compromised.
The Trinamool Congress welcomed the revised rates and GST cuts as a “victory for common people,” achieved after sustained pressure on the government. “A victory wrested from a tone-deaf regime that only listens when forced.” Mahua Moitra said the withdrawal of 18 per cent GST on life and health insurance policies came after (West Bengal CM) Mamata Banerjee wrote to the Finance Minister.
The Dravida Munnetra Kazhagam welcomed the decision but expressed concern. DMK-ruled Tamil Nadu Finance Minister Thangam Thennarasu welcomed the automated mechanism for sanction of provisional refunds for exports and the inverted duty structure, but expressed concerns over state revenue protection.
The GST Council’s decision is expected to boost consumer spending and stimulate economic growth, with several essential items becoming cheaper. However, sin goods and luxury items will attract a higher tax rate of 40 percent.
Advertisement
