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The move puts the BJP in good stead ahead of upcoming election battles in the states of Bihar, West Bengal, Assam, Kerala and Tamil Nadu
Government sources said they are expecting record spending by consumers during the festive season this time. (PTI)
The big GST cut effective from September 22 is both good economics and good politics on part of the Narendra Modi government as it will spur consumption and public spending and add to the Centre’s bouquet of gifts for the common man ahead of key state election battles.
Government sources said they are expecting record spending by consumers during the festive season this time as the GST cuts come into effect on the first day of Navratri, September 22, almost a month ahead of Diwali on October 20 this year. After the big income tax relief given under the new tax regime earlier this year during the Union Budget, the GST cut is the second big gift for the common man this year which puts the BJP in good stead ahead of upcoming election battles in the states of Bihar, West Bengal, Assam, Kerala and Tamil Nadu. The BJP will be making the GST cuts a big part of its election campaign in the coming months, emphasising that the Narendra Modi government has put more money in the hands of the common man and increased his or her purchasing power.
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The government fast-tracked the implementation of the GST cut after Prime Minister Narendra Modi on August 15 announced the GST rationalisation exercise as a Diwali gift. But the government was aware it needs to roll out the GST cuts much before Diwali so that consumer spending is not dampened during the festive season as people would tend to hold off purchases anticipating a price cut.
Nearly every item vital to the common man had seen a massive GST cut down to either 5 per cent or 0 per cent effective September 22, and medical insurance and life insurance will now see nil GST. Life-saving drugs and most medicines will also see lower GST, in a relief for the common man.
The BJP is also expecting political gains as FM Nirmala Sitharaman on Wednesday said the UPA was never able to implement GST as states were never able to trust the UPA government at the Centre then.
“Congress should prepare its mind—whether it has to support these cuts or oppose them,” the FM said. The BJP feels that by criticising the GST rejig, the Congress would be seen as anti-public. “They will get exposed before the people,” Sitharaman said. This would hold the BJP in good stead before the key state election battles.
About the Author
Aman Sharma, Executive Editor – National Affairs at CNN-News18, and Bureau Chief at News18 in Delhi, has over two decades of experience in covering the wide spectrum of politics and the Prime Minister’s Office….Read More
Aman Sharma, Executive Editor – National Affairs at CNN-News18, and Bureau Chief at News18 in Delhi, has over two decades of experience in covering the wide spectrum of politics and the Prime Minister’s Office…. Read More
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