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Key Points

Congress MP Shashi Tharoor has welcomed the recent GST reforms, describing them as a "much-fairer" system. He stated that his party has been advocating for simplifying the four-rate structure for years. The reforms merge the 12% and 28% slabs into an 18% standard rate while maintaining a 5% rate for essentials. Tharoor believes these changes will provide relief to common people and benefit everyone.

Key Points: Shashi Tharoor Welcomes GST Reforms as Much Fairer System

  • Congress party long demanded GST simplification from four rates
  • New system merges 12% and 28% slabs into 18% standard rate
  • 5% slab covers essential goods like food and medical equipment
  • Luxury items like tobacco and high-end vehicles taxed at 40%
3 min read

Much-fairer system; better for everyone: Shashi Tharoor welcomes GST reforms

Congress MP Shashi Tharoor endorses recent GST reforms, calling the simplified two-slab system "much fairer" and better for everyone, providing relief to common people.

"I think it's a much fairer system and we hope it'll be much better for everyone - Shashi Tharoor"

Thiruvananthapuram, September 8

Congress MP Shashi Tharoor has welcomed the recent GST reforms and termed them a "much-fairer" system, saying that these reforms will provide relief to the common people and will be better for everyone.

Speaking to ANI on Sunday, Tharoor said the Congress party has been demanding changes in the Goods and Services Tax (GST) rate slabs for several years.

"We in the Congress party have been asking for this for many years. I think our leaders have been flagging the need to go from four rates to at least just two, or ideally one, one day, because this is actually unfair to people. When you had four rates, it was confusing, it was difficult. People were not happy about this. So now I think it's a much fairer system and we hope it'll be much better for everyone," the Congress MP said.

Earlier, Congress President Mallikarjun Kharge alleged that US President Donald Trump's "pressure is mounting" and claimed the Union government implemented the GST reforms with elections approaching.

Kharge also criticised Prime Minister Narendra Modi following the US tariffs imposed on Indian exports by the Trump administration.

"They are doing this now when the elections are close, and Trump's pressure is mounting. These people kept saying that China was not allowed to infiltrate into the country, and now PM Modi himself went and met them... If we are supporting them, that doesn't mean they can make arbitrary decisions... We have been practising a non-aligned policy since the time of Jawaharlal Nehru. However, when PM Modi came to power, he made statements like 'Trump is my friend.' Then Trump made statements that ruined the environment in the country and the world. They are not executing our foreign policy properly..." Kharge said.

On September 3, 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.

The 5 per cent slab comprises essential goods and services, including food and kitchen items such as butter, ghee, cheese, dairy spreads, pre-packaged snacks, bhujia, mixtures, and utensils; agricultural equipment; handicrafts and small-scale industries; as well as medical equipment and diagnostic kits.

The 18 per cent slab applies as 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 per cent rate also 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.

Some essential services and educational items remain fully exempt from GST, including individual health, family floater and life insurance, as well as certain services related to education and healthcare.

- ANI

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Reader Comments

P
Priya S
Good to see opposition leaders supporting positive reforms instead of opposing everything. Tharoor is right - simplification benefits everyone. Hope this reduces the compliance burden on small traders.
A
Aman W
But why did it take so many years? The complexity was hurting small businesses since the beginning. Better late than never though. The 5% slab on essentials is a relief for middle-class families.
S
Sarah B
As an expat in India, I've found GST compliance quite challenging. This simplification is welcome news for foreign businesses operating here. Hope it improves ease of doing business rankings.
K
Karthik V
The 40% slab on luxury goods and sin products makes sense. Why should common people subsidize luxury items? Good move to keep essentials affordable while taxing luxuries higher. 👍
M
Meera T
Hope the government ensures that businesses actually pass on the benefit to consumers. Often we see prices remain the same even after tax cuts. Need strict monitoring mechanism!
R
Rahul R
The exemption for health and education services is praiseworthy. These should never be heavily taxed in a developing country like ours. Good thinking by the GST council.

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