GST Reform Sparks Controversy Amid Allegations and Price Cuts
The recent GST reform, reducing tax rates to two slabs, has sparked controversy. DMK leader TKS Elangovan criticizes the Union Government for exploiting state resources. Meanwhile, major brands like Amul and Mother Dairy announce price cuts, benefiting consumers and boosting industries across various sectors.
- Country:
- India
In a scathing critique, Dravida Munnetra Kazhagam (DMK) leader TKS Elangovan accused the Union Government of depleting state resources through the new Goods and Services Tax (GST) reforms. Addressing reporters, Elangovan alleged that the government has appropriated state finances under the guise of GST, thereby undermining state autonomy.
The contentious GST reform, approved during the 56th GST Council meeting, is now operational, replacing the four-rate system with a simplified two-slab regime of 5% and 18%. A 40% rate remains for luxury items. While the reform is designed to lower prices and promote industrial growth, it faces criticism from regional leaders.
In contrast to the political backlash, the manufacturing and consumer sectors anticipate positive impacts. Amul and Mother Dairy are among brands reducing prices on various products, including dairy staples like milk and butter, reflecting the GST benefits. These adjustments aim to lower living costs and drive economic expansion across multiple industries.
(With inputs from agencies.)
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- Amul
- Mother Dairy
- state resources
- Union Government
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- industry growth
- tax base
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