Arun Jaitley and team announce major revamp in GST, Twitter is divided

Finance Minister Arun Jaitley announced major changes in the Goods and Services Tax (GST) which rolled out on July 1, this year

Finance Minister Arun Jaitley and the GST council today made significant changes in the original tax structure which was rolled out on 1 July, this year. The 23rd council meet held in Guwahati cut rates on a wide range of mass items from 28% to 18%. Earlier 227 items fell in the bracket of 28% tax but now it has been brought down to 50 luxury items. The changes will come into effect from November 15, said the Finance Minister addressing the media.

Taxes on handmade furniture, shampoo, sanitary ware, suitcase, wallpaper, plywood, stationery articles, watch, and play instruments have been slashed. Tax rates on AC and non-AC restaurants have been brought to 5% meaning eating out will now be cheaper. Earlier AC restaurants attracted 18 per cent GST and while non-AC ones attracted 12 per cent GST.

At the press meet, Arun Jaitley said GST is a work in progress and the council has been reviewing the rates from time to time. He added if people think these changes have been made due to the upcoming Gujarat elections, then he can’t do much about it. BJP leaders like Shivraj Singh Chouhan and Sushil Kumar Modi hailed the changes made by the council. They said it would provide relief to customers and allow ease of doing business. The opposition, however, maintained the changes have been rolled out after the Narendra Modi led government was criticised over its ill-planning of what was hailed as the ‘biggest tax reform’.

Also read: At the Delhi Job Fair, people blame PM Modi’s demonetisation, GST for unemployment

Check out what political leaders had to say about the major revamp:

Also read: From Gabbar Singh Tax to Great Selfish Tax, the game for GST acronyms seems far from over

The announcements on GST divided Twitter, though. While some said the government believed in trial and error, others appreciated the changes. Here are a few tweets:




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