Finance Minister Nirmala Sitharaman on Saturday lashed out at Opposition parties, accusing them of "misleading the country" on Goods and Services Tax (GST) reforms.
Addressing PTI, Sitharaman made it clear that the plan to have more than one GST slabs was not one taken by BJP alone but by the Empowered Committee of the state finance ministers.
Under the new regime, effective from September 22 to align with Navratri, the GST Council has cleared a two-slab system of 5% and 18%, in addition to an enhanced 40% rate for luxury goods and goods that fall in the "sin" category. Currently, essentials are covered under the 5% slab, with most other goods charging 18%.
The previous structure had four slabs — 5%, 12%, 18% and 28%. The reform has done away with the 12% and 28% rates.
Terming the decision as a "people's reform," Sitharaman emphasized that households would be benefited by the rate cuts and the overall consumption would increase. "The reform would touch 140 crore people. There would be no one left untouched by GST. Even the poorest of the poor have something small that they purchase, touched by GST," she said.
Sitharaman had, earlier, said that the reform was not just focused on “rationalising rates”, but also included structural changes. “It's also about ease of living, so that businesses can conduct their operations with the GST with great ease,” the Union Finance Minister said.
Sitharaman also said that the reforms had been undertaken with a focus on “common man”. “Every tax on the common man's daily use items has undergone a rigorous review, and in most cases, the rates have come down drastically,” she said.
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