Chidambaram replies to Modi on criticizing Rahul for asking 18% cap on GST

New Delhi Nov 30: Prime Minister Narendra Modi on Thursday criticized the Congress for demanding an 18% cap on GST rates.

Former Finanace moinister P Chidambaram responded to Modi's remark and asked whether the government's Chief Economic Adviser (CEA) was "stupid" for having a similar view.

"If it is Grand Stupid Thought to argue for a cap of the tax rate at 18%, then CEA Dr Arvind Subramanian and many other economists are stupid. Is that what PM is saying?" Chidambaram said in a series of tweets.

In a rebuttal to Gandhi's repeated criticism of the GST, a key economic reform undertaken by the NDA government, Modi said a "recently emerged economist" was propagating a "grand stupid thought" by suggesting a uniform GST rate of 18%.

Chidambaram responded to the criticism saying: "Has PM read the CEA's report on Revenue Neutral Rate? Did not CEA recommend an RNR of 15-15.5%? Why can't the normal GST rate be 15% and RNR plus rate on luxury goods be 18%?" he asked.