Published: Sat, November 11, 2017
Health | By Jay Jacobs

Chidambaram on GST rates cuts: Congress, I are vindicated

Chidambaram on GST rates cuts: Congress, I are vindicated

In a series of tweets after Finance Minister Arun Jaitley announced that the GST Council has chose to slash tax slabs for 178 items from 28 percent to 18 percent, Chidambaram said that the rate has been "capped" at 18 percent.

"Your elections did what Parliament and common sense could not do", he tweeted.

Congress vice president Rahul Gandhi has been calling the government's blanket 28 per cent GST rate "Gabbar Singh Tax", after an iconic villain from Hindi cinema.

The Congress has been batting for capping all taxes under GST regime at 18%, a demand rejected by the government.

Chidambaram added that the next goal for Congress is to push for one rate.

Prime Minister Narendra Modi on Friday said the recommendations of the GST Council will further benefit Indians.

"Congress FMs will force changes in GST Council meeting today".

Deputy Chief Minister of Bihar Sushil Kumar Modi said that, it is a historic decision taken by the GST Council as to retain only 50 items in the highest slab and cut the tax rate on 177 items from 28 per cent to 18 per cent. "These recommendations are in the spirit of the continuous feedback we are getting from various stakeholders on GST", he tweeted. The decision was taken at a "closed-door" meeting of GST Council in Guwahati on Friday. The all-powerful Council pruned the list of items attracting the top 28 per cent tax rate to just 50 from 227 previously.

Chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo and deodorants and washing powder detergent are some of the items that will now attract a lower 18 per cent rate. The GST revision also brought relief for restaurants, with Jaitley saying that a uniform 5 per cent rate will be levied on all eateries, both air-conditioned and non-AC.

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