Congress leader Pawan Khera slams Modi Govt's GST reforms: 'Finally have to follow Rahul Gandhi's advice'

Congress leader Pawan Khera on Thursday slammed the Centre over the next-generation GST reforms after eight years. 

Khera's comments came a day after Finance Minister Nirmala Sitharaman announced a major cut in Goods and Services Tax (GST) rates on essential goods, cars, farm equipment, and electronics.

The GST rate cut move is being seen as a major reform aimed at providing relief to households, businesses, and the healthcare sector. The GST Council has simplified tax rates by limiting them to 5 per cent and 18 per cent, effective 22 September. A special 40 per cent rate will apply to luxury items like high-end cars, tobacco and cigarettes.

In a post on X, Pawan Khera wrote, "When they finally have to follow RahulGandhi's advice, why do they take so much time in doing that?"

Khera shared screenshots of Gandhi's previous posts in which he said, "as an indirect tax affects rich and poor alike, I urge GST council to keep the rate at 18 per cent or lower so that the poor are not unduly burdened."

Prime Minister Modi announced the sweeping changes to the complex GST regime during his Independence Day speech on 15 August.

The Congress party has reacted to PM's I Day announcement, saying, finally, the prime minister has understood that "as long as these changes are not introduced and there is no substantial increase in consumption and spending, the process of development will not accelerate.”

“For the last 18 months the Indian National Congress has been demanding fundamental changes into the Goods and Services Tax 2.0,” Congress MP Jairam Ramesh said in a statement.

In a post on X, Chidambaram, the former Union Finance Minister, said the current GST design and rates should not have been introduced in the first place, adding that the opposition had repeatedly warned against these issues for years, but their pleas were ignored.

5% 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% 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.

(With ANI inputs)