Gabbar Singh Tax: Critique of GST knee-jerk

'Gabbar Singh Tax' critique of GST knee-jerk, disservice to our institutions: FM

22/02/2022
Union Finance Minister Nirmala Sitharaman on Monday termed the opposition's criticism of the Goods and Services Tax (GST) as "Gabbar Singh Tax" and termed it as a knee-jerk reaction that is harmful to the country's institutions. In response to a suggestion regarding GST during a post-budget interaction with industry in Financial Capital,The Union Minister explained that the GST Council comprises all the states and the Centre, and has only a third effect on subsequent decisions.

It may be noted that Congress leader Rahul Gandhi has repeatedly referred to GST as the 'Gabbar Singh Tax', using a fictional character from a popular 1970s film. Gandhi blamed GST as one of the reasons for the decline in economic growth.

Sitharaman said, "For whatever reason, unintentionally or unintentionally, when we try to tarnish GST for any agenda, we are undermining the institution that has been created with all the states, said Sitharaman.

Revenue Secretary Tarun Bajaj said that GST is a very interesting thing where neither the state nor the Center can decide and decisions are the basis of a committee system which evaluates the process.

The ministry officials were responding to a question by JD Patil, whole-time director of defense business of L&T, who asked why his company cannot transfer tax credit from one state to another in which it operates. He also said that companies are unable to transfer credit between the sectors in which they operate. PTI AA RAM

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