Cong demands overhaul of GST architecture

The Congress party on Friday demanded an overhaul of the goods and services tax (GST) architecture, terming the existing system as “flawed”.

Congress Vice-President Rahul Gandhi said it was time the Narendra Modi government shed its “arrogance” and acknowledged its “incompetence”. A little after the GST Council meeting ended, he tweeted that the Congress “will not allow BJP to impose a ‘Gabbar Singh Tax’ on India”.

In Guwahati, Congress finance ministers described the decisions taken in the GST Council meeting on Friday as “too little, too late”. They pitched for further thinning of the highest tax slab of 28 per cent. They demanded shifting of items like cement, paints, air conditioners, and washing machines from the 28 per cent to 18 per cent slab in the next meeting.

“There are a lot of items from the construction sector and white goods in the 28 per cent bracket that need to be brought down. Why should there be a 28 per cent category at all for any items except sin and luxury goods?” Punjab Finance Minister Manpreet Badal said.

“Why did it take five months for the government to lower rates? We have pitched for 18 per cent as the highest tax slab since the beginning,” Badal said. He said instead of taking credit, the government needed to apologise for putting items of common use in the highest tax slab.

Senior Congress leader P Chidambaram tweeted before the meeting: “Thanks to Gujarat elections, the government is forced to heed advice of opposition and experts on flaws in implementation of GST.”

However, when Finance Minister Arun Jaitley was asked whether the changes were made keeping in view the Gujarat elections, he said if lower rates helped consumers, then it was good.

Bihar Deputy Chief Minister Sushil Kumar Modi said, “Thanks to (Arun) Jaitley for bringing in consensus on all major issues in the GST Council meeting. Only Jaitley can do it.”

Rahul Gandhi, who is scheduled to again visit poll-bound Gujarat from Saturday, said the government cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs. He demanded the Centre “correct the fundamental flaw in the GST architecture to give India a ‘Genuine Simple Tax’.” “Don’t waste India’s time with lip service,” he added.

In Patna, senior BJP leader Yashwant Sinha demanded that Prime Minister Narendra Modi sack Finance Minister Arun Jaitley. “The finance minister did not apply his mind while rolling out the goods and services tax and that’s why he is tinkering with the GST everyday...” Sinha said.

“THANKS TO GUJARAT ELECTIONS, THE GOVT IS FORCED TO HEED ADVICE OF OPPOSITION AND EXPERTS ON FLAWS IN IMPLEMENTATION OF GST” P CHIDAMBARAM Congress leader