Chidambaram questions ‘Did government exploit consumers?’
Chidambaram wrote sarcastically, “The Hon’ble Finance Minister is understandably proud that 99 per cent of goods in the 12 per cent bracket are now in the 5 per cent bracket,” and questions the delay in bringing the reform which Congress says has proposed first in 2005.
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In August, the gross GST collection increased by 6.5 per cent YoY, reaching a total of Rs 1.86 lakh crore vs Rs 1.75 lakh crore in August 2024. And in the previous month of July the GST collection was Rs 1.96 lakh crore.
“Did the government not exploit the Indian consumer by levying 12 per cent during the last eight years?” he added.
However, he highlighted that he and his party welcome the move, writing, “We welcome the reduction in the tax rates.”
New two-slab GST structure to take effect from Sept 22
Prime Minister Narendra Modi during his Independence Day speech on August 15 had announced the simplification of the Goods and Services Tax (GST) system from the existing four GST slabs (5%, 12%, 18%, and 28%) to a simplified two-slab structure: 5% and 18%. Additionally, a special 40% tax rate was introduced for “sin goods” and luxury items. This reform was presented as a “Diwali gift” to the nation.
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Subsequently, on September 3, the 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, officially approved these changes. The new GST structure is set to take effect on September 22, ahead of the Diwali festival.