Reacting to the opposition's comment that the latest Goods and Services Tax changes are better late than never, Union Minister of Commerce and Industry Piyush Goyal said these comments show they don't understand the situation. He mentioned that Prime Minister Narendra Modi turned the GST into a success story in the last eight years.
"Well, I think it only demonstrates their ignorance that they have not understood the step-by-step systematic way in which Prime Minister Narendra Modi has made this entire GST over the last eight years a success story which is watched by the whole world," Goyal said.
"He has ensured that more than 30 taxes, duties and levies have been abolished and combined into one tax. At that point in time, states wanted to make sure they didn't lose revenue. So there was a fitment in the nearest rate for all the products. Over the past 8 years, Prime Minister Modi has consistently reduced the rate, helping the people, the common man, whenever required. I remember in 2018, he had reduced it to over 100 items. And has continuously been very sensitive to the demands of people," he added.
The Union Minister called the GST rate changes "a game-changing transformation."
"But this time, since the compensation was no longer required, having met the 14pc compensation growth every year to the states by November or so, it will not be required. This has given him the elbow room and Prime Minister Modi decided that all of it should go back to the people of India and it's a game-changing transformation," he said.
Former Union Finance Minister and senior Congress MP P Chidambaram on Thursday welcomed the GST reforms that slash the 12 and 28 per cent slabs, but said that the reduction has come eight years too late.
"I welcome the reduction. The other truth is that it has been done eight years too late. We have always advocated a single rate, with a small plus or minus. This is a huge progress over the six or seven rates they had. In the course of time, I believe, it will come down to a single rate," Chidambaram said.
Also Read: Pharma ind terms GST cut on drugs, medical supplies 'historical'
Earlier in Madurai, Chidambaram told reporters that the Congress party and several economists, including former Chief Economic Advisor Arvind Subramanian, had voiced concerns about the tax structure at the time of its introduction.
Chidambaram said, "I appreciate the government for realising its mistake after eight years. Eight years ago, when this law was implemented, it was wrong. At that time, we had advised that such a tax should not be imposed. The then Chief Economic Advisor, Arvind Subramanian, also advised that it was a mistake."
Chidambaram thanked the NDA government for admitting their errors but criticised Prime Minister Narendra Modi and his ministers for ignoring the Congress party's concerns regarding the issues with GST.
He mentioned that GST was introduced in India on July 1, 2017, and it replaced old indirect taxes as part of the 101st Constitutional Amendment Act passed in 2016. The first, single tax system had several different rates, like 0pc, 5pc, 12pc, 18pc, and 28pc, to be used for different products and services depending on whether they were necessary or considered a luxury.
Also Read: Chidambaram on GST: Govt took wrong path for 8 years, made U-turn
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