New Delhi: Linking the Goods and Service Tax reduction on several items to assembly polls, Former Finance Minister P. Chidambaram said that the government has slashed down GST rates only when elections are around the corner. He also questioned that why did government not follow their advice and cut down the GST rates in 2017?
Expressing his point of view, Chidambaram tweeted, “GST Council cuts rates on 100 items, approves quarterly returns. Belated wisdom. Why did Government not follow our advice in July 2017? When elections are around the corner, government cuts rates. I suppose that makes a good case for frequent elections in different states!”
He further stated: “The present GST is still ‘unreformed’. Government must notify three rates immediately and signal its intention to move to a single rate in the medium term. That will be true GST.”
Mr. Chidamabaram claimed that there are several lacunae in the GST law but doubted “if the government had the will or the skill to remove them.”
The GST council, made up of all the State Finance Ministers beside the union Finance Minister, recently announced a major overhaul of the tax rates on items such as refrigerators, washing machines, vacuum cleaners, sanitary napkins to name a few.