• Source:JND
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Senior Congress leader P Chidambaram welcomed the Central Government’s move to revise and cut GST slabs and rates during the first day of the GST council meeting on Wednesday. The Rajya Sabha MP, however, stated that the current GST design and rates should not have been introduced in the first place, terming the reforms “too late”. The new GST rates come amid US President Donald Trump's 50 per cent tariffs on India.

The GST Council on Wednesday approved the proposed two-tier tax structure of 5 and 18 per cent. The council stated that the changes will be implemented from September 22. Union Finance Minister Nirmala Sitharaman, while providing details, stated that GST on life-saving drugs and medicines will come down to zero from 12 per cent. She further stated that the tax on several agriculture products, including tractors, forestry machines, and composting machines will be lowered to 5 per cent from 12 per cent.

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"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," Chidambaram wrote on X.

He suggested multiple economic and political factors that may have influenced the decision after eight years of delay, including the tariffs imposed on Indian goods to the US, as well as elections in Bihar that are to be held later this year.

"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.

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TMC Calls GST Reforms ‘Victory For Common People’

The All India Trinamool Congress (TMC) also lauded the revised rates and GST cuts as a "victory for common people".

"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.