GST: After Rahul Gandhi’s promise of one tax rate, will GST become a big election issue?
Goods and Services Tax: Rahul Gandhi has been continuously besieging the Central Government regarding GST and has also been calling GST as Gabbar Singh Tax.
Rahul Gandhi On GST: Karnataka will vote for the assembly elections on May 10, 2023. Political parties have thrown themselves into the election campaign. But in this election Goods and Services Tax i.e. GST is also becoming a big issue. And it is clear from the indications that GST is going to become a major election issue in the 2024 Lok Sabha elections.
Rahul’s election promise, there will be one rate in GST
In the election campaign in Karnataka, former Congress President Rahul Gandhi announced that if the Congress government is formed at the Centre, then his government will make major changes in the tax rate structure of GST. Rahul said that for the first time tax has been imposed on the farmers. In the history of India, GST was imposed on the farmers. He said that GST has been brought only to benefit the rich. Rahul said that small businesses have been closed due to GST, GST is so complex that people have not been able to understand it till date. If our government comes to Delhi, we will change the existing GST. There will be only one tax and its rate will also be low. Let us tell you that Rahul has been addressing GST in the past in the name of Gabbar Singh Tax.
Has the purpose of One Nation One Tax been fulfilled?
With the aim of One Nation One Tax, it was announced to implement GST in the country with a joint meeting of both the Houses of Parliament at midnight on July 1, 2017. But in the current GST, there are not one but four slabs of tax rate and along with this cess is also imposed on luxury and sin goods. There are four slab rates of GST which include 5%, 12%, 18% and 28%. And cess is also imposed on luxury products and sin goods with 28 percent GST, which includes luxury cars and tobacco cigarettes.
GST increased inflation!
The decision to impose five per cent GST on packaged food from July 18, 2022, on packaged or packaged and labeled flour, curd, paneer, lassi, honey, dry makhana, dry soyabean, peas, wheat and other grains and puffed rice should be implemented. Due to which these things have become expensive. The Modi government has been criticized since this decision of the GST Council, so it is counted among the main reasons for the rise in inflation. Allegations were leveled against the government that now the government is collecting tax even on roti-dal. After which Finance Minister Nirmala Sitharaman had to give clarification. There have been complaints of difficulties in filing GST returns.
No decision yet on GST rate review
At the same time, there has been talk of changing the GST rates for a long time, but till now it has not happened. The Group of Ministers (GoM) formed for rationalization and review of GST rates is in favor of abolishing the 12 percent GST slab rate. The members of the Group of Ministers believe that the items on which 12 per cent GST is charged, their share in the total GST collection is only 8 per cent. In such a situation, 12 percent GST can be abolished.
Vivek Debroy is also in favor of one rate
Vivek Debroy, chairman of the Prime Minister’s Economic Advisory Council, is also in favor of a single rate of GST. Last year he had said that it is my opinion on GST that there should be only one rate of tax. However, he also clarified that, I do not think this will ever happen. He said that whatever be the product, the GST rate should be the same. However, he told his view as personal opinion.