Sivaganga (Tamil Nadu) [India], September 5 (ANI): Congress leader Karthi Chidambaram on Friday welcomed the reduction in Goods and Services Tax (GST) rates, emphasising that it should either be “zero-rated” or “have a single uniform rate”.
The Congress MP highlighted that the economy was severely affected during the period of inflation and the COVID crisis in the country.
Speaking to mediapersons, the Congress MP said, “I welcome the reduction in GST tax. This should have been done earlier. During the period of inflation and the COVID crisis, the economy was severely affected. At that time, it was necessary to reduce the tax. For goods, GST should either be zero-rated or have a single uniform rate.”
The Congress leader further added that the tax department should function in a people-friendly manner. “When taxes are reduced, the economy will grow, and people will buy more,” he told reporters.
On Wednesday, Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.
Meanwhile, Rajasthan Minister Jogaram Patel expressed gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman over the GST reforms, stating that the decision is a gift for the common people. “The Prime Minister had said on Independence Day that this time Diwali will come very well. In the GST Council meeting under FM Nirmala Sitharaman, changes to the GST slabs have been made as a gift to the people,” Patel told ANI.
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
Five per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While the 18 per cent slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.
Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance. No GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare, are GST-exempt. (ANI)
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