In the pre-GST era, India had a complicated, inefficient and multiple Indirect tax system which meant that each assesse could be levied upto 17 different taxes. And as we have seen the GST consolidated them to one tax, said a press release of the BJP.
In a recent press release, Arun Jaitley also stated that from the time the GST Constitutional Amendment Bill was brought into effect, there have been twenty eight meetings of the GST Council. The meetings reviewed the GST tariffs on a continuous basis and the first year post GST the country has witnessed an encouraging trend, said the release.
Hitting out at the Congress Arun Jaitely stated in a release, “The pre-GST tariff was a Congress Party legacy. He also stated in a report that the standard rate for central excise plus VAT plus CST was 12% + 14% + 2%. To this, if the cascading effect of tax on tax was added, the eventual tax payable on a commodity was 31 per cent. Items of household use from mineral water, hair oil, toothpaste, soap, dairy, to construction material and white goods were all taxed at 31 per cent. The total number of goods falling in this category was 235. This 31 per cent tax was Congress Party’s gift imposed on India. This tax was the ’Congress Legacy Tax’.”
Jaitley also stated that from the day GST was implemented, several items which were proposed to be put in the 28 per cent category (where the 31 per cent items were adjusted) were brought down to 18 per cent.
He further opined, “On 10th November, 2017, within four and half months of GST implementation, 177 items and on 21st July, 2018, another fifteen items were brought down.”
Jaitley stressing on the effectiveness of GST observed that even in other GST meetings on individual basis, several items were considered and brought down. He said, “The 28 per cent category is being phased out. Bulk of these items remaining in this category are only luxury items or sin goods. The other items outside the luxury–sin goods category are cement, air-conditioners, large screen televisions and a handful of others.”
Observing on how the GST has helped the people, Jaitley said he was hopeful that with further expansion of revenues, these few items may also witness a change of category. He expressed, “Thus within a record period of thirteen months, the GST Council has almost phased out the 28 per cent category. It is only a matter of time that the final obituary of the ‘Congress Legacy Tax’ is written. Only the luxury-sin tax would remain.”