Raipur (Chhattisgarh) [India], September 5 (ANI): Former Chhattisgarh Chief Minister Bhupesh Baghel alleged that the government rationalised the Goods and Services Tax (GST) in the wake of the Bihar Assembly elections, scheduled to be held later this year.

Taking a jibe at the Centre, Baghel reiterated Rahul Gandhi's 'Gabbar Singh Tax' remark.

Speaking to ANI on Thursday, the Congress leader said, 'Rahul Gandhi called it Gabbar Singh Tax. PM Narendra Modi betrayed the country by calling it One Nation One Tax, but this tax was collected in five slabs... Small traders were the worst hit because of this tax.'

'The opposition was always against it. The government has finally woken up, but it is because the Bihar elections are close,' he added.

Meanwhile, CM Vishnu Deo Sai lauded the move to rationalise GST rates to two slabs of 5 per cent and 18 per cent and said that it will benefit the common man and industry.

'The GST reforms will greatly benefit the common man and industry. With the reduction in slab rates, trade will become easier. New GST slabs will be implemented from 22 September, the first day of Navratri,' the Chief Minister told ANI.

Deputy CM Vijay Sharma said that the new GST rates will strengthen the economy and the states will earn 'good' revenue.

He said, 'When the new slab rates will be implemented on 22 September, prices of many things will go down. Tax on health insurance has become zero. Not only will our economy strengthen, but the states will also be earning good revenue.'

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.

Union FM Nirmala Sitharaman announced the decision on September 3, after she chaired the GST council meeting. This has reduced the previous GST slabs from 5 per cent, which consisted of essential goods and services, including food and kitchen items, agricultural equipment, handicrafts and small industries, and also medical equipment and diagnostic kits.

While the 18 per cent 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.

Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as 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. (ANI)