GST council decisions mean Diwali has come early for us: PM Modi in Gujarat

The GST Council yesterday raised the composition scheme threshold for businesses to Rs 1 crore, which will allow them to pay a tax of one per cent to five per cent.

Prime Minister Narendra Modi (File | PTI)

Prime Minister Narendra Modi appeared to sound the bugle for the year-end Gujarat elections on Saturday, saying Diwali had come early this year because of the changes announced to the GST regime.

On a visit to Gujarat days before the polling schedule for his home state and Himachal Pradesh are announced, Modi said: “Diwali has come early for our citizens due to the decisions taken in the GST Council... You all must be busy preparing for Diwali, and in Gujarat, Diwali is celebrated with great enthusiasm, especially among businessmen.”

On Friday, the GST Council had eased tax compliance rules for small and medium businesses and slashed tax rates on 27 products, among other things. Modi said “some very important decisions” related to GST had been taken. “We do not want the country’s business class to get caught in red tape, files, bureaucracy, I will never want this,” he said.

Addressing a gathering in Dwarka after laying the foundation stone for a bridge between Okha and Bet Dwarka, Modi said his government stood for all-round development and panned the Opposition for its “narrow vision” and resorting to cheap stunts to drum up support. In contrast, the BJP believes in concrete action to facilitate “all round and extensive progress,” he said.

Congress spokesperson Randeep Surjewala hit back, saying an opportunity to have an uncomplicated tax regime was lost due to the “sheer incompetence” of a “panic-stricken government... lost in the chaos of its own making”.

Shiv Sena chief Uddhav Thackeray criticised the Modi government for taking away the common man’s credit in forcing the cut in GST rates. “There is no Lakshmi (cash) in people’s pocket now as Govt has taken it all. People are worried how to do Lakshmi poojan during Diwali? It’s good that govt reduced the GST charges, but see the social media how people are making fun of this GST,” he said.

IIT-ians versus Tea-ian

Modi urged students at IIT Gandhinagar on Saturday to help expand computer literacy in rural areas. Nudging the students to do their best. “You are IIT-ians, I was a Tea-ian when I was young (I sold tea)...I had decided that whatever I will do, I will do to the best of my abilities,” he said.