"Congress MP Shashi Tharoor endorses fresh Goods and Services Tax rate structures"

The GST Council has made a significant decision to rationalise the Goods and Services Tax (GST) rates, bringing the number of slabs down to two – 5% and 18%. This move is expected to provide relief to the common people and boost growth in various sectors such as FMCG, auto, and construction.

Under the new system, the 18% GST slab will continue to be the standard rate for most goods and services. This includes small cars, motorcycles up to 350cc, consumer goods like electronic items, household goods, and some professional services. A uniform 18% rate also applies to all auto parts. The 5% GST slab, on the other hand, covers essential goods such as butter, ghee, cheese, dairy spreads, pre-packaged snacks, bhujia, mixtures, utensils, agricultural equipment, handicrafts, small-scale industries, medical equipment, and diagnostic kits.

The 12% and 28% GST rates will be merged as part of the reforms. Some essential services and educational items remain fully exempt from GST, including individual health, family floater, and life insurance, as well as certain services related to education and healthcare.

Congress MP Shashi Tharoor has welcomed the recent GST reforms, terming them as a "much-fairer" system. Tharoor, who has been advocating for changes in the GST rate slabs for several years, has also suggested reducing the number of GST rate slabs to two or ideally one.

However, there is no specific mention of the US tariffs imposed on Indian exports by the Trump administration or any allegations by Congress President Mallikarjun Kharge about US President Donald Trump's influence on the GST reforms.

The 40% GST slab for luxury and sin goods, including tobacco, pan Masala, aerated sugary beverages, luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters, remains unchanged.

The exact timeline for the implementation of these changes is yet to be announced. The search results do not contain information about when the Congress party under Shashi Tharoor first demanded changes to the GST tax rate slabs.

Tharoor believes that the new GST system will provide relief to the common people and contribute to economic growth. The 56th GST Council meeting marked the decision to rationalise the GST rates, a move that is expected to bring clarity and simplicity to the tax structure.

"Congress MP Shashi Tharoor endorses fresh Goods and Services Tax rate structures"