'Welcome but 8 years too late': P Chidambaram criticises timing of Centre's GST rate cuts

New Delhi: Senior Congress leader and Rajya Sabha MP P Chidambaram has welcomed the Centre's move to rationalise GST and cut rates but criticised the timing, calling it "8 years too late." In a post on X, Chidambaram said the present GST structure and rates "ought not to have been introduced in the first place," and highlighted that the opposition had been warning the government about the design and rates since the system's inception, but their concerns were ignored.

Chidambaram questioned the motives behind the government's move, speculating about sluggish growth, rising household debt, falling savings, upcoming Bihar elections, and external pressures such as US tariffs as possible reasons for the sudden reforms. "It will be interesting to speculate on what drove the government to make the changes: Sluggish growth? Rising household debt? Falling household savings? Elections in Bihar? Mr Trump and his tariffs? All of the above?" he remarked.

Responding to the rollback, the All India Trinamool Congress (TMC) described the GST rate reduction as a "victory for common people" and credited sustained public and political pressure for the move. The TMC highlighted that Chief Minister Mamata Banerjee had long called taxing insurance premiums "cruel" and "anti-people," and accused the BJP-led NDA government of being "tone-deaf," acting "only when cornered." The party vowed to keep fighting every “anti-people” decision.

Finance Minister Nirmala Sitharaman had earlier announced the GST rationalisation as part of the "Next-Gen GST Reform," with the GST Council deciding to merge the 12 per cent and 28 per cent slabs, creating a simpler two-tier structure of 5 per cent and 18 per cent. The government presented these reforms as a Diwali gift to the nation, aiming to ease household, farmer, and business costs and stimulate economic activity across sectors.

With inputs from ANI