'Gabbar Singh Tax' critique of GST knee-jerk, disservice to our institutions: FM

Union Finance Minister Nirmala Sitharaman on Monday termed the Opposition's criticism of the Goods and Services Tax (GST) as 'Gabbar Singh Tax' as a knee-jerk reaction which is a disservice to the country's institutions. Responding to a suggestion pertaining to the GST during a post-Budget interaction with the industry in the financial capital, the Union minister explained that the GST council consists of all the states and the Centre, and the latter has only a one-third influence on the decisions which are arrived at.

It can be noted that Congress leader Rahul Gandhi has repeatedly called the GST 'Gabbar Singh Tax', using the fictional character from a popular movie of the 1970s. Gandhi has blamed the GST as among the reasons for the decline in economic growth.

"For whatever reason, unknowingly or unknowingly, when we try to tarnish the GST for whatever agenda, we are undermining the institution which has been created with all the states on board," Sitharaman said.


"Many knee-jerk reactions of... oh GST has now become a... the famous words of one of the opposition leader 'Gabbar Singh Tax', they are disserving our own country's institutions," she added.

Revenue Secretary Tarun Bajaj said the GST is a very interesting thing where neither the states nor the Centre can decide and the decisions are basis a committee system which evaluates the process.

The ministry official's was responding to a question from L&T's Whole Time Director for the defence business J D Patil who asked why cannot his company transfer tax credit from one state to another state in which it operates. He also said that companies are unable to transfer the credit between verticals they operate in. PTI AA RAM