Imposing 1.5% Goods and Services Tax (GST) on diamonds while levying 5% on essential commodities like flour, rice, and curd shows the priorities of the Narendra Modi government, the Congress said on Tuesday.
“GST on Health Insurance: 18%
GST on Hospital Room: 5%
GST on Diamonds: 1.5%. ‘Gabbar Singh Tax’ is a painful reminder of who the PM cares for. A single, low GST rate will reduce compliance costs, prevent govt from playing favourites & ease burden on poor & middle class families," former Congress chief Rahul Gandhi tweeted.
Addressing a press conference, party spokesperson Gourav Vallabh said that exemptions had been withdrawn for pre-packed and pre-labelled food grains, fish, paneer, lassi, honey, jaggery, wheat flour, buttermilk, meat/fish that are not frozen, and puffed rice (muri) will now be taxed at 5%.
Similarly, hotel rooms with tariffs up to ₹1,000 per day will now be taxed at 12%. Rates have been increased to 18% from 12% on products such as printing, writing, or drawing ink, knives with cutting blades, spoons, forks, paper knives, pencil sharpeners, and LED lamps.
"On the other hand, the Group of Ministers had finalised a uniform 28% GST on casinos, horse racing, and lottery. This decision was asked to be reviewed, and the GoM has been given a 15-day period to review its decision," Mr. Vallabh said.
"What is more important for the government — casinos or the common person? Why were taxes raised across the board with no review of the decision to remove tax exemptions?" he asked.
Congress’ communication chief Jairam Ramesh tweeted, ”People were already hassled by Modi-made inflation. After July 18, they will be further troubled by GST-induced inflation....where have the good days gone?”
