GST 2.0: 'Historic' To 'Eight-Years Late', Leaders Across Political Spectrum React To 'Next-Gen Reforms'

Maharashtra Chief Minister Devendra Fadnavis, Andhra Pradesh Chief Minister N Chandrababu Naidu, Rajya Sabha MP P Chidambaram, Union Home Minister Amit Shah, and several other senior leaders have reacted to the GST Council's decision to revise GST tax slabs for a majority of commonly used items.

Here are some reactions from the members of the political fraternity.

Congress leader Chidambaram welcomed the GST council's rate rationalisation, but said it was eight years late. He said the GST and the rates prevailing until today should not 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. The current design of GST and the rates prevailing until today ought not to have been introduced in the first place.

"We have been crying hoarse for the last 8 years against the design and rates of GST, but our pleas fell on deaf years." He remarked it would be interesting to speculate on what prompted the government to make the changes, and suggested options from sluggish growth to elections in Bihar, or even external factors such as Donald Trump's tariffs.

Trinamool Congress MP Mahua Moitra shared Kolkata CM Mamata Banerjee's letter dated August 2, 2024, to Union Finance Minister Nirmala Sitharaman urging withdrawal of 18% GST on life and health insurance policies. She alleged the FM had finally done it due to "pain" from friend Doland’s (Donald Trump) 50% tariffs.

Some Congress leaders also pulled out an old X (formerly Twitter) post of Rahul Gandhi during 2016 wherein he had stressed that "18% cap on the GST rate is in everybody's interest."

Fadnavis called it a "historic reform for New India!" and said a burden had been lifted off people by abolishing 12% and 28% slabs, and moving to just 5% & 18%. "Most importantly, health and life insurance now kept out of GST — a massive relief for every family," he said.

Naidu welcomed the GST reforms with revised slabs across daily essentials, education, healthcare, and agriculture. "This pro-poor, growth-oriented decision will benefit all sections of society, from farmers to businesses."

Shah called it a "transformative decision" and said, "These reforms will not only ensure ease of living, but will also give a big boost to ease of doing business, especially for small traders and entrepreneurs."

Union Minister for Communications and Development of North Eastern Region Jyotiraditya Scindia said the "next-Gen GST" was "pro-people, pro-growth and pro-reform."

Uttar Pradesh Chief Minister Yogi Adityanath called GST 2.0 as "transformative measures that will simplify the lives of citizens, make business easier, and accelerate local manufacturing and entrepreneurship," while Minister of Road Transport & Highways Nitin Gadkari said that these GST reforms are a "step towards empowering citizens and strengthening our economy."

The GST Council on Wednesday approved limiting slabs to 5% and 18%, effective from September 22, the first day of Navratri. Briefing reporters after a marathon day-long GST Council meeting, Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement with any state. The panel approved simplifying the GST from the current four slabs - 5, 12, 18 and 28%, to a two-rate structure - 5% and 18%. A special 40% slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

Sitharaman said the reforms have been carried out with a focus on the common man, and in most cases, tax rates have come down drastically.