On Wednesday, ex-Finance Minister P Chidambaram has attacked the Centre over its accused change in stance on GST (Goods and Services Tax) regime, claims that a single standard GST rate was a bad idea but now the “declared goal” of the BJP-led Modi government.
Mr. Chidambaram’s sharp criticism of the central government comes days after GST council at its 31st meet has slashed tax rates for 23 common used items. The tax rate was reduced from 18 percent to 12 percent and 5 percent.
On Monday, Finance Minister Arun Jaitley had hinted at further rationalization of GST by merging 12 percent and 18 percent slabs. He further accused Congress of oppressing the country with a high-rate of Indirect Tax at 31 percent.
Hits back at the BJP government, the Congress leader said that “Until yesterday a single standard rate of GST was a stupid idea. Since yesterday, it is the declared goal of the government!”
In a series of Twitter post, Mr. Chidambaram said that “Until yesterday capping GST at 18 percent was impracticable. Since yesterday, the Congress party’s original demand of an 18 percent cap is the declared goal of the government.”
“Until yesterday, the chief economic adviser RNR (Revenue Neutral Rate) report to fix the standard rate at 15 percent was in the dustbin. Yesterday it was retrieved and placed on the finance minister’s table and was promptly accepted,” added Mr. Chidambaram.