By Apoorva Misra,News18

Copyright news18

“Do you question a marathoner why he makes the last push to win a race,” Union tourism minister Gajendra Shekhawat asked on Monday as he termed the government’s decision to cut GST rates transformative and said the country was in festive mode even before Diwali.
“GST rate cuts are not just a policy decision. It isn’t just about giving relief to people by slashing rates. From the days of economic wrongdoings of the UPA government, which landed India in the Fragile Five economies of the world, the Narendra Modi government, through crucial and difficult decisions in the past 10 years, has made the country the fourth-largest economy in the world. India’s tax collection base has broadened and there is a rise in the amount being collected as tax. The GST cuts are a culmination of that effort and the vision of PM Narendra Modi,” Shekhawat said at the Network18 Reforms Reloaded 2025 Summit.
The minister, when asked about the prime minister’s address on the eve of GST reforms and what he meant by the term neo-middle class, said before PM Modi entered national politics in 2014, ‘Garibi Hatao’ was used as a slogan or a political weapon but the number of poor was on the rise. “For the first time, post-2014, someone made the effort to deal with issues related to the poor. Policies were not only formulated but 100 per cent saturation till the grassroots level was ensured. You can check Niti Aayog, World Bank or statistics of any economic institution; they will show that a large segment of the population has been able to come out of poverty and join the middle class now. The neo-middle class is the aspiring class of our country.”
Shekhawat also refused to see relief to the middle class as a political weapon, insisting that the Modi government does not take decisions from a political point of view. “The decisions are taken keeping the welfare of the country in mind. If the citizens understand the intention of the government and keep us in power, that is an indirect benefit. People who took decisions from a political point of view have been related to the sidelines today.”

Questioned about the Opposition’s allegations that GST cuts were a means to divert attention from the tariffs imposed on Indian goods by the United States, Shekhawat reminded the audience of the demonetisation exercise which coincided with the UP elections. “Go and check what the Opposition said then. But look at what ultimately happened. I will say this again—every issue does not need to be politicised. Efforts have been made to look for politics in every government decision to gain mileage out of it. However, they will always fail.”

“Prices have reduced for 95 per cent goods in the 12 and 18 per cent tax slabs. Prices of essential commodities used in households on a daily basis have reduced. When income tax slabs changed, I had said it leaves more money in the pocket of the common man. Now, he either spends it or invests it. In both cases, the government benefits. Indirectly, tourism also benefits. India has seen a rise in domestic travel as people have money to spend now,” Shekhawat said.
The minister, when asked about the need to bring in GST reforms now, said before GST, the country had different tax slabs because of which manufacturers and consumers were often at a loss. “The Opposition raised several questions but I salute the courage of PM Modi who said tax collection would not reduce and if any state faces losses, the Union government would compensate. Because we unified the tax regime, people got more money to spend as the base of tax-payers increased. This, coupled with honest tax collection and tax assessment, led to a situation where the government reduced taxes instead of increasing them. The move has also benefited the smaller industries and MSMEs.”
Shekhawat also shared an interesting analogy when asked if international factors had a role to play in the timing of the government’s decision. “If a man is running in a 400 meters race and he puts in all his effort as he reaches the finish line and ultimately wins the race, will you ask him this question? Will you ask him that when he was racing earlier too, why did he start putting in extra effort near the finish line?” Shekhawat asked as the audience erupted in applause.
The minister also took potshots at the Congress for claiming credit for GST, saying it was the Congress leader who had earlier termed it ‘Gabbar Singh Tax’.