Senior Congress leader and former Finance Minister P. Chidambaram criticized the GST reform, questioning the government’s delay in rationalizing tax slabs. He welcomed the reduction of rates but asked why it took eight years to correct the structure.
Chidambaram stated that GST reform should have been logical from the start in 2017. He said repeated appeals from the opposition were ignored. According to him, the timing of the move could be linked to slowing growth, rising household debt, shrinking savings, upcoming Bihar elections, or even trade war fears with former US President Donald Trump.
On the other hand, Finance Minister Nirmala Sitharaman recently announced major GST changes at the 56th Council meeting. From September 22, the four-tier GST system will be replaced with two slabs — 5% and 18%. This comes just ahead of Navratri.
As part of the new GST reform, essential items like soaps, shampoos, toothpaste, and talcum powder will now fall under the 5% slab instead of 18%. Everyday goods such as bicycles, utensils, and milk bottles will also become cheaper. Basic food items, life-saving cancer drugs, and health insurance will be fully exempt from GST.
