GST Overhaul: Political Maneuver or Economic Reform?

In a significant policy shift amid the politically charged atmosphere surrounding the upcoming Bihar Assembly elections, the Indian government has undertaken a major overhaul of the Goods and Services Tax (GST). Former Chhattisgarh Chief Minister Bhupesh Baghel has criticized the timing of this rationalization, suggesting it as a mere ploy for electoral gain.

Speaking to ANI, Baghel reiterated Congress leader Rahul Gandhi's criticism of GST, dubbing it 'Gabbar Singh Tax'. He argued that the policy negatively impacted small traders rather than fulfilling its promise of 'One Nation One Tax' due to its implementation across five tax slabs. Baghel claims the ruling party's realization is perhaps too conveniently aligned with the election schedule.

Conversely, Chief Minister Vishnu Deo Sai welcomed the reform, noting the benefits accruing from the new two-tier tax system of 5% and 18% GST rates. The Chief Minister stated these changes, effective from September 22 during Navratri, will ease trading complexities and ultimately assist the common man. Deputy CM Vijay Sharma echoed these sentiments, indicating a positive economic impact with reduced prices on many goods and a zero tax rate on health insurance. He contended that this restructuring will bolster both the national economy and state revenues.