September 8, 2025

Congress MP Shashi Tharoor has dropped some fresh thoughts on the recent GST reforms — and guess what? He calls the new system "much fairer" and a big relief for the common people! The Congress leader said that his party has long pushed for changes in the GST rate slabs. “We in the Congress party have been asking for this for many years. I think our leaders have been flagging the need to go from four rates to at least just two, or ideally one, one day, because this is actually unfair to people. When you had four rates, it was confusing, it was difficult. People were not happy about this. So now I think it's a much fairer system and we hope it'll be much better for everyone,” Tharoor explained. But the story doesn’t end there! Congress President Mallikarjun Kharge added his fiery take, accusing the Modi government of bowing under "mounting pressure" from then US President Donald Trump. Kharge claimed that the government rushed the GST reforms because elections are near. He also slammed PM Modi for being too friendly with Trump despite tough US tariffs hitting Indian exports. “They are doing this now when the elections are close, and Trump's pressure is mounting. These people kept saying that China was not allowed to infiltrate into the country, and now PM Modi himself went and met them... If we are supporting them, that doesn't mean they can make arbitrary decisions... We have been practising a non-aligned policy since the time of Jawaharlal Nehru. However, when PM Modi came to power, he made statements like 'Trump is my friend.' Then Trump made statements that ruined the environment in the country and the world. They are not executing our foreign policy properly...,” Kharge said. So, what exactly changed in the GST system? On September 3, 2025, the 56th GST Council meeting decided to simplify the rates from four slabs to mainly two - 5% and 18%, by merging the 12% and 28% slabs. The 5% slab now covers essential goods and services like butter, ghee, cheese, dairy spreads, pre-packaged snacks such as bhujia and mixtures, along with utensils, agricultural equipment, handicrafts, small industries, plus medical equipment and diagnostic kits. The 18% slab is the new standard rate applying to most goods and services including small cars, motorcycles up to 350cc, electronic items, household goods, some professional services, and auto parts. Beyond this, there is a 40% tax slab on luxury and "sin" goods — think tobacco, pan masala, cigarettes, bidis, sugary drinks, luxury vehicles, big motorcycles above 350cc, yachts, and helicopters. Some essential services like certain insurance types, and parts of education and healthcare remain fully exempt from GST. What does this mean for you, the common Indian? With fewer tax rates, less confusion awaits and hopefully lighter bills on essentials. But the political jabs continue, making this GST story even more masaledar! Stay tuned.

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Tags: Gst reforms, Shashi tharoor, Mallikarjun kharge, Gst rate slabs, Indian economy, Us tariffs,