A Selective Memory on GST

/5 min read
Despite states with Congress governments being represented in the GST Council, the party has consistently attacked GST
A Selective Memory on GST
(Illustration: Saurabh Singh) 

Finance Minister Nirmala Sitharaman refuted Congress’ charge that changes in the Goods and Services Tax (GST) were “course corrections” to iron out infirmities that the party claimed to have pointed out. “We were the ones to bring in GST, they could not even attempt it. If the implication is that we brought it wrongly, I am sorry… Gradually, the rates are coming down, so the correction is for the sake of people getting benefits because once the collections increase and the tax net widens, you are able to give the benefits back. Whoever speaks on behalf of Congress should have a former finance minister beside them to educate them,” Sitharaman told the media.

 Despite states with Congress governments being represented in the GST Council, the party has consistently attacked GST as “Gabbar Singh Tax”. Public memory is short, but Congress delayed passage of the GST legislation by two years till 2017 by insisting on conditions like a maximum 18 per cent tax rate be written into the Bill despite the impracticability of doing so as some luxury products needed a much higher slab. Further, the need to get parliamentary approval for changes in the maximum slab would hamper the functioning of the GST Council. Congress leader Rahul Gandhi believed hurting the new Modi government’s “feel-good” factor would benefit his party. Congress therefore used BJP’s lack of numbers in Rajya Sabha to block the constitutional amendment and relented only in the face of adverse feedback that it was being perceived negatively as obstructionist by opposing a measure that would benefit consumers as well as business.

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