A historic decision was taken at the 56th GST Council meeting, under which 12% and 28% tax slab has been abolished. Now only two slabs – 5% and 18% will remain. On this matter, Finance Minister Nirmala Sitharaman said that this change will bring relief for common families, farmers, businesses and health sector. He called it the GST improvement of the next generation and the gift of Diwali for the country.

Congress leader and Rajya Sabha MP P Chidambaram has reacted to the government’s decision. He welcomed it, but also criticized strictly. He wrote on X (East Twitter) that rationalizing GST and decreasing rates on many things and services has been welcome, but this decision has been taken with a delay of 8 years. This existing form and tax slab should not have been implemented from the beginning. We were constantly warning while in opposition, but our arguments were ignored.

The GST Rationalization and the Reduction in Rates on a range of goods and services are welcome but 8 years too late

The current design of gst and the rates previving until today

We have been crying hoorse for the last 8…

– P. chidambaram (@pchidambaram_in) September 3, 2025

P Chidambaram raised questions
Congress leader and Rajya Sabha MP P Chidambaram questioned why this reform was still done. He speculated the political and economic reasons behind this. He questioned whether this decision has been taken under the pressure of sluggish economic development, increasing domestic debt, decreasing savings, upcoming Bihar elections or American tariffs. All these factors can be forced to force the government.
TMC surrounds the government
The All India Trinamool Congress (TMC) also attacked the central government and called this decision a victory for the public. The TMC said that taxing the insurance premium was cruel and anti -people. Mamta Banerjee opposed this from the beginning. However, this decision proves that the BJP government listens only when it is under pressure. The TMC warned that it will continue to fight against every such anti -people decision between Parliament, Road and the public.

Economic and political impact
Cutting in GST rates will provide relief to consumers and reduce the cost of living. The industry will get a chance to increase sales and production. There will also be pressure on the government that further decisions should be taken in time and transparent manner.

Also read: These things will no longer be taxed, all from milk and drugs out of GST, read the full list here