Congress MP Shashi Tharoor has hailed the recent Goods and Services Tax (GST) reforms as a “much fairer system,” saying the changes will simplify taxation and provide relief to the common people.
Speaking to ANI on Sunday, Tharoor said the Congress had long demanded rationalisation of GST slabs. “We in the Congress party have been asking for this for many years. Our leaders flagged the need to go from four rates to at least two, or ideally one, because four slabs were confusing and unfair. Now, with a simpler structure, it’s a much fairer system and will be better for everyone,” he said.
Meanwhile, Congress President Mallikarjun Kharge criticised the timing of the reforms, alleging that the Modi government acted under pressure from US President Donald Trump with elections approaching. He also accused the government of compromising India’s foreign policy.
At its 56th meeting on September 3, the GST Council decided to streamline tax rates into two primary slabs—5 per cent for essentials and 18 per cent for most goods and services—while retaining a 40 per cent slab for luxury and sin goods. Certain essential services, particularly in healthcare and education, remain exempt.
The 5 per cent slab covers basic food items, utensils, handicrafts, agricultural tools, and medical kits. The 18 per cent rate applies broadly to consumer goods, electronics, automobiles (up to 350cc), and professional services. Luxury items like tobacco, aerated drinks, and high-end vehicles remain under the 40 per cent category.