Lucknow (Uttar Pradesh) [India], September 22 : Uttar Pradesh Congress President Ajay Rai on Monday criticised the Centre over the Goods and Services Tax (GST), reminding the government of the Congress party's persistent criticism when it was implemented in 2017.
Speaking to ANI, Rai remarked that Congress MP Rahul Gandhi had already said that "Gabbar Singh Tax" would destroy trade and traders.
"When GST was implemented 8 years ago, our leader Rahul Gandhi said that this is not in the interest of the country and the traders. This Gabbar Singh Tax destroy trade and traders... At that time, senior BJP leaders were not going and meeting the traders to tell them the losses they will likely suffer and the taxes that will be levied..." Ajay Rai said.
Meanwhile, the GST 2.0 reforms, which the Union Government approved on September 4, have been implemented from today.
Under the revised structure, the previous four-tier GST slabs have been consolidated into two main categories: 5 per cent and 18 per cent. Items that were earlier taxed at 12 per cent have been brought down to 5 per cent, while those in the 28 per cent category have been rationalised to 18 per cent. Essential commodities and daily-use items are now taxed at the lowest rate, making them more affordable for households.
A separate 40 per cent slab has been retained for luxury and sin goods.
This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.
In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.
Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products.