'Sarcasm Can't Substitute Common Sense': Raghav Chadha Slams FM Sitharaman For Her GST Remark

FM Sitharaman responded to Chadha's remark in Rajya Sabha over GST and said that expensive goods do not lead to higher GST collection as consumption reduces.

Nirmala Sitharaman meets Raghav Chadha. (File Photo/ PTI)

Aam Aadmi Party (AAP) leader and newly elected Rajya Sabha member Raghav Chadha on Friday took a jibe at Nirmala Sitharaman over the Goods and Services Tax (GST) and rejected the statement made by Union Finance Minister in the Upper House over the issue. Taking to Twitter, Chadha said that the "aam aadmi" (common man) has known all long that expensive good leads to higher GST collection. 

Earlier in the day, FM Sitharaman responded to Chadha's remark in Rajya Sabha over GST and said that expensive goods do not lead to higher GST collection as consumption reduces.

"Hon'ble FM @nsitharaman claimed in Parliament that expensive goods do not lead to higher GST collection as consumption reduces. It would be amiss on my part to not set the record straight, as the aam aadmi has known all along that this logic does not apply to essential goods," Chadha tweeted along with snippets of video footage of the debate between him and Sitharaman in Rajya Sabha.

Hon'ble FM @nsitharaman claimed in Parliament that expensive goods do not lead to higher GST collection as consumption reduces. It would be amiss on my part to not set the record straight, as the aam aadmi has known all along that this logic does not apply to essential goods. pic.twitter.com/cuUZkM4FfE

— Raghav Chadha (@raghav_chadha) August 5, 2022

"The truth: Rev. Secy. Tarun Bajaj said himself that inflation had a big role in high GST revenue. WPI includes primary food items, and there is a direct correlation in record GST collection (1.68LCr-Apr'22) and high WPI (constantly in double digits, at 15%-Apr'22)," Chadha said in another tweet.

"Therefore, amid an 8 year high in inflation, was expected (in vain) that Govt. will not benefit out of people's misery. And I am happy to further explain for the Central Govt. that packaged rice, pulses, wheat on which GST raised are nearly demand inelastic," the AAP leader said further.

"Therefore, poor+mid-class specially depend upon them for sustenance and we cannot throw them under the bus hoping that they would "reduce consumption" as the Hon'ble FM predicts. Poor Indians cannot starve themselves to save money. Sarcasm cannot substitute common sense," he added.

While speaking in the Upper House, Chadha slammed Centre's GST policy and said, "Government will never be in favour of reducing GST rates, also known as garib soshan tax (exploitation of poor), as higher the inflation, more the GST collection. GST helps in filling govenment's treasure and thus government can never intend to lower inflation and this is a big issue."

In the video, Chadha even attached several statements of Revenue Secretary Tarun Bajaj give to media where he acknowledges that inflation has contributed in higher GST collections. Bajaj has also said that higher inflation has pushed further the rate rationalisation for the time being.

Chadha's tweet came a day after he met Sitharaman in the national capital and sought a rollback of 12 per cent GST on inns near the Golden Temple in Amritsar. The GST Council had in June decided that a 12 per cent tax will be levied on all hotel rooms that cost below Rs 1,000 per day.

"Rajya Sabha MP from Punjab Raghav Chadha met Union Finance Minister Nirmala Sitharaman and submitted a letter regarding withdrawal of the decision of imposing 12 per cent GST on 'sarais' (inns) located near the Golden Temple in Amritsar," the Aam Aadmi Party tweeted.

Even Punjab Chief Minister Bhagwant Mann condemned the Centre for imposing GST on inns, saying it targets the pilgrims staying at the 'sarais' near the Golden Temple.

Terming the GST council’s decision arbitrary and irrational, Mann had said the 'sarais', including Guru Gobind Singh NRI Niwas, Baba Deep Singh Niwas and Mata Bhag Kaur Niwas were associated with the Golden Temple.