Senior Congress leader P. Chidambaram on Friday said that he and his party are vindicated by the cuts in the Goods and Services Tax (GST) rates. “Congress is vindicated. I am vindicated. The merit of capping GST at 18% is now recognised,” Chidambaram tweeted. The former Finance Minister mocked the Bharatiya Janata Party (BJP) and said that the government learned its lesson because of the upcoming Gujarat Assembly elections. “When GST rate is capped at 18%, this Govt would have learnt its lesson belatedly. Thank you Gujarat. Your elections did what Parliament and common sense could not do(sic),” he wrote.
The Rajya Sabha MP said the next goal of his party will be the implementation of the Revenue Neutral Rate (RNR) in GST. “Congress party’s next goal will be to push for one rate: RNR with an RNR plus and an RNR minus,” he said. The RNR is a structure of different rates established in order to match the current revenue generation with revenue under GST.
Union Finance Minister Arun Jaitley today announced moving 178 items from the 28 percent to the 18 percent tax bracket under the GST, applicable from November 15. The changes in the tax system were decided at the 23rd GST Council meeting headed by the finance minister, at Guwahati today.