GST Overhaul Sparks Debate: Congress Criticizes Government Amidst Consumer Gains

In response to the recent next-generation GST reforms, Congress leader Bhupendra Singh Hooda has sharply criticized the Central Government, demanding clarity on whether GST collected over the past seven years will be refunded. Hooda emphasized the necessity for more substantial relief under GST for the common citizen.

Speaking to ANI, Hooda questioned, "GST was introduced by this government. Why did they not consider these changes seven years ago? Will they reimburse the collected GST of the last seven years? Despite the announced reforms, more relief is needed for the benefit of the ordinary citizen." The new GST 2.0, approved by the Union Government on September 4, has now been implemented.

The updated GST framework consolidates the previous four-tier slabs into two main categories: 5% and 18%. Items previously at 12% are now at 5%, while those taxed at 28% have been adjusted to 18%. Essential and daily-use items fall under the lowest tax rate, enhancing their affordability. A distinct 40% tax rate remains for luxury and sin goods.

This overhaul is anticipated to streamline compliance, reduce consumer prices, boost manufacturing, and support various sectors, including agriculture, automobiles, FMCG, and renewable energy. The reform aims to lower living costs, strengthen MSMEs, expand the tax base, and drive inclusive growth. In the FMCG and dairy sectors, brands such as Amul and Mother Dairy have announced significant price reductions following the GST decrease.

Key items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods are now taxed at 5%, with Amul butter dropping from Rs 62 to Rs 58 per 100 g, and Ultra High Temperature milk reduced from Rs 77 to Rs 75 per liter. Mother Dairy has also reduced prices on products like milkshakes and frozen goods. (ANI)

(With inputs from agencies.)