The Central Government has recently announced comprehensive reforms in Goods and Services Tax (GST) rates. The GST Council decided on Wednesday that two main rates, 5% and 18%, will now be implemented in the country to simplify the tax structure. This new system will be effective from September 22.
GST Reforms 2025: Senior Congress leader and former Finance Minister P. Chidambaram has welcomed the recent reduction in GST rates by the government, but at the same time, he has raised questions about the government's actions. Responding on social media, Chidambaram asked why it took 8 years to take this step.
He posed six important questions to the government and also questioned the timing of the reduction. Chidambaram stated whether this decision is linked to Trump's tariffs or if it was taken in view of the upcoming Bihar Assembly elections.
Chidambaram's Questions to the Government
P. Chidambaram welcomed the reduction in GST rates but also questioned why it took 8 years to take this step. He asked six important questions to the government through his social media post. His first question was whether these rates should not have been implemented in the first place. The Congress leader stated that the opposition has long been demanding rationalization of rates, but the government did not pay attention to those arguments. Chidambaram asked in his post:
- Was the reduction in GST rates made considering the sluggish growth rate?
- Was this decision taken due to an increase in domestic debt?
- Is the decline in domestic savings the reason for this?
- Is this step intended to influence the Bihar Assembly elections?
- Did the tariff decisions of the Trump administration compel the Indian government?
- Or, did all these reasons collectively lead to this reform?
Through these questions, he made it clear that the Congress party doubts the government's intentions and the timing of this reform.
GST Council's Decision
In the GST Council meeting, all states supported the rationalization of rates. Bihar Deputy Chief Minister Samrat Chaudhary stated that the decision was taken unanimously and will simplify the tax structure. However, West Bengal Finance Minister Chandrima Bhattacharya warned that this move would result in an estimated revenue loss of approximately ₹47,700 crore for the states.
Meanwhile, Uttar Pradesh Finance Minister Suresh Khanna said that the decision to impose a tax of more than 40% on sin goods and luxury items will be taken later.
