Shedding crocodile tears over GST hike

The Monsoon session of Parliament has begun. All opposition parties raised hue and cry over the five per cent GST on milk, milk products, pulses, cereals like rice, wheat, flour and other such items, which would attract GST at the rate of 5 per cent.

They criticised the government terming it as an "anti-people" move. Congress leader Rahul Gandhi said in a tweet: "High taxes, No jobs. BJP's masterclass on how to destroy what was once one of the world's fastest growing economies."

The Union Finance Minister Nirmala Sitharaman defended the imposition of five per cent GST on pre-packed and pre-labelled products as a step to plug tax leaks. This issue will now become part of opposition ammunition to hit at the government during election time. But what one fails to understand is that why do politicians (both the BJP and opposition) parties think that people will believe them blindly?

Are not the protests inside Parliament, the statements by different parties outside Parliament and in their respective states a big drama?

The fact is that the issue was discussed at the Goods and Service Tax Council 47th meeting which unanimously decided to go for a rate hike on the notified essential items.

The states which approved the tax hike in GST rates were Karnataka, Bihar, Goa, Kerala, Rajasthan, Uttar Pradesh, and West Bengal. While Rajasthan is ruled by the Congress, Kerala is ruled by the Left Democratic Front, and West Bengal by Mamata Banerjee-led Trinamool Congress (TMC). Why did they keep quiet? Well because every state would get a share out of it and would add to their revenue. Fine then why raise hue and cry now? Why shed crocodile tears?

This kind of public posturing clearly exposes the double standards of the political parties. Why don't these MPs who are protesting question their own governments, why they did not object levying of 5 per cent GST at the GST council meeting?

If they think GST on essentials was good, then where was the need for the ongoing high drama which the Parliament is witnessing. They need to explain what made them waste public money on such protests.

The Government explained that single packages of food items like cereals, pulses, flour like rice, wheat, flour etc weighing up to 25 kg will be considered as 'pre-packaged and labelled', and liable for 5 percent GST. The catch here is on the term up to. The Minister said any product whose package is more than 25 kgs will not attract 5 per cent GST.

But then Madam FM and Honourable members please visit any neighbourhood Kirana store and ask for one kg of any pulses of your choice. You will only get pre-packed products. The branded wheat packets consist of one kg, 2 kg, 5 kg and 10 kg packs. Rice bags across the country these days are of 25 kgs. So, there is no way the common man can avoid GST.

The FM said this new decision was to plug tax leaks. Well no neighbourhood kirana store gives a proper bill for the products you buy. What they give is a kachcha receipt on a small piece of white paper. They will collect GST from the customer but they will not pay to the government. How can tax leakages be checked? Has any thought been given in this direction? Will these protests yield any results? People need to think.