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The GST restructuring comes barely 20 days after Prime Minister Narendra Modi announced his intent to simplify the tax structure
The GST overhaul also serves as a strong political counter to opposition narratives. File pic/PTI
In what is being widely seen as a pre-Diwali bonanza, the Government of India has delivered a sweeping GST rate rationalisation—a move aimed squarely at easing the burden on the middle class, farmers, and small traders.
This landmark decision, announced by Finance Minister Nirmala Sitharaman on Wednesday following the 56th GST Council meeting in New Delhi, brings everyday items such as spectacles, hair oil, edible oil, ghee, and small cars under reduced tax slabs. For the aspirational middle class, this also means that goods like TVs, air conditioners, and consumer electronics are now far more affordable.
“This was a clear and focused effort for the benefit of the common man,” said a senior government official, summarising the sentiment behind the move.
A Mandate Delivered in 20 Days
The GST restructuring comes barely 20 days after Prime Minister Narendra Modi announced his intent to simplify the tax structure. The Prime Minister had emphasised the urgency of the task, instructing that it be implemented before the auspicious Navratras, leaving no room for delay.
Within days of the PM’s directive, the Group of Ministers (GoM) accepted the proposed changes, and a long-pending GST Council meeting was convened.
Although originally scheduled for two days, the Council achieved unanimous consensus in a single day, after more than 11 hours of intense deliberation. The government was determined to conclude the process quickly, leaving no space for speculation, delay, or political manoeuvring.
Broad Support—Even from Reluctant Corners
The pro-consumer and pro-middle-class nature of the announcements made it difficult for any stakeholder—including opposition-ruled states—to oppose the reforms.
While there were last-minute objections from states like Kerala and Karnataka, who demanded an extension of the compensation cess, the Centre remained firm. The Finance Minister reportedly reminded states that the exercise should not be viewed as a revenue loss, but rather as a revenue-generating economic stimulus in the long term.
Speaking with News18, the Finance Minister remarked, “I don’t want to be dragged into the issue of revenue loss raised by some Opposition CMs. In the end, it’s about the economy.”
Rebutting Political Rhetoric with Action
The GST overhaul also serves as a strong political counter to opposition narratives. Criticisms like Rahul Gandhi’s “Gabbar Singh Tax” label now appear increasingly outdated as the government aligns its tax policy with consumer relief and economic energisation.
The Finance Minister, speaking with News18, summed up the achievement: “We achieved this restructuring in just 20 days. It shows we are a government that works.”
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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