New GST rates: Former Finance Minister and Rajya Sabha MP P Chidambaram has reacted to the Centre’s GST rationalisation and rate cuts announced after the first day of the GST council meeting on Wednesday. While the senior Congress leader “welcomed” the decision, he also took a swipe at the NDA, saying that “8 years are too late”. 

‘Welcome, but 8 years too late’

In a post on X (formerly Twitter), he said that the existing “design and rates” of GST should never have been introduced in the first place. 

“The GST rationalisation and the reduction in rates on a range of goods and services are WELCOME, but 8 years TOO LATE,” he said, before adding, “The current design of GST and the rates prevailing until today ought not to have been introduced in the first place.”

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He also said that the Modi-led Central government never paid heed to the Congress’s warnings and suggestions on GST reforms. 

He further added, “We have been crying hoarse for the last 8 years against the design and rates of GST, but our pleas fell on deaf ears.”

GST reforms: ‘Interesting to speculate…’

Chidambaram further speculated on what may have pushed the government to revise GST rates at this juncture.

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“Sluggish growth? Rising household debt? Falling household savings? Elections in Bihar? Trump and his tariffs? All of the above?” he asked.  

The two-tier rate structure of 5% and 18%, effective from September 22, was cleared by the GST Council on Wednesday. Finance Minister Nirmala Sitharaman said the decision was taken unanimously, which will benefit households, farmers, businesses and the healthcare sector. She also informed that the new GST reforms, which are touted as “Diwali gift to the nation” have been welcomed by all the states. However, the rationalisation is expected to cause a revenue loss of Rs 48,000 crore.