"Centre has looted state govt's resources": DMK leader TKS Elangovan on implementation of GST reforms

Chennai (Tamil Nadu) [India], September 23 (ANI): Hitting out at the Union Government over the implementation of Goods and Services Tax (GST) reforms, Dravida Munnetra Kazhagam leader TKS Elangovan alleged on Tuesday that they are looting the state government resources.

He mentioned that the Centre is taking the financial resources, which are the right of state governments, in the form of GST.

The government of India looted the state government resources, its financial resources, by taking away commercial taxes in the form of GST. Commercial tax is the right of the state, Elangovan told ANI.

Now they have reduced it because they no longer need any more money, as they have already waived loans worth Rs 60,000- 70,000 crore borrowings made by the two or three rich people of Gujarat... So they dont need any money. This is money looted from the state. So they can reduce it to any level, he alleged.

The reform in the Goods and Services Tax structure, which was approved during the 56th meeting of the GST Council earlier this month, came into effect on Monday.

The current four-rate system has been replaced with a streamlined two-slab regime of 5 and 18. A separate 40 per cent slab has been retained for luxury and sin goods.

This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.

In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.

Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products. (ANI)

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