New Delhi [India], September 5 (ANI): Congress leader Shama Mohamed on Thursday criticised the newly introduced Goods and Services Tax (GST) reforms, stating that it was not a historic decision, asserting that the party leader Rahul Gandhi's suggestions on the tax structures were right.

'This is not a historic decision. Rahul Gandhi had always objected to the five tax slabs; he always said there should be only two tax slabs... Why was there 5% tax on daily use items? Why was cement taxed at 28%?... Like we all say, what Rahul Gandhi says is right, and the government takes time to accept his suggestions.' Mohamed told ANI.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

The 5 per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance.

Additionally, GST is not applicable to health and life insurance premiums, as well as education and healthcare services, such as certain services related to education and healthcare, which are also GST-exempt. (ANI)