'Thank You Gujarat', Tweets P Chidambaram After GST Cut

Delayed reduction in GST:Chidambaram

Chidambaram hits out at Modi govt on GST, says 'thanks to Gujarat elections'

"Hinting that the BJP government has timed the GST review with an eye on next month's crucial elections in Gujarat where small traders are upset over the new tax, Mr Chidambaram said ".Your (Gujarat) elections did what Parliament and common sense could not do". The merit of capping GST at 18% is now recognised", Chidamabaram went on to say, before delivering his denouement: "Thank you Gujarat.

In a series of tweets, Chidambaram said that the government had learned its lesson belatedly. "The Congress party's finance ministers had no specific role in decisions made, as Chidambaram has fraudulently claimed today", he added.

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Earlier in the day, Chidambaram had said that Congress finance ministers would "force changes" in the GST rates in the meeting.

Modi hailed the recommendations made by the GST Council and said that it will further benefit the people and strengthen the tax regime.

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This comes after the GST Council on Friday removed 178 items from the highest 28 per cent category in a major revamp of the GST structure. "These recommendations are in the spirit of the continuous feedback we are getting from various stakeholders on GST", he tweeted.

After the GST revision, the 28 per cent tax rate bracket, which previously had 228 items, now has just 50 mostly luxury and sin products.

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The decision was taken during the 23rd GST Council meeting in presence of Union Finance Minister Arun Jaitley, deputy CMs, finance ministers of the states held at Hotel Radison Blue in Guwahati. A host of daily use items like chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble and cosmetics, washing powder, baking powder, make up products are set to become cheaper post the announcement.

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