‘Finally woken up’: Congress demands discussion paper on GST 2.0 announced by PM Modi; insists on simplification, protection for states

Congress leader Jairam Ramesh (File photo)

NEW DELHI: A day after PM Modi announced plans to roll out reformed GST plan, Congress demanded an official discussion paper and debate, while claiming they have been demanding these changes for 1.5 years.In a statement shared on X, Congress General Secretary Jairam Ramesh emphasized the party’s stance, asserting that the GST should genuinely be a Good and Simple Tax, rather than a “Growth Suppressing Tax.” “The Indian National Congress demands an official discussion paper on GST 2.0 very soon so that there can be an informed and wider debate on this vital and pressing national issue. GST 2.0 should be truly a Good and Simple Tax (GST) in letter, spirit, and compliance, not like the Growth Suppressing Tax (GST) it has become,” he said. Referring to the PM’s announcement on Independence Day, Jairam Ramesh remarked, “PM seem to have finally woken up” and acknowledged the need for transformation to drive economic growth.”Yesterday, the Prime Minister seems to have finally woken up to the fact that economic growth will simply not accelerate unless this transformation takes place and increases private consumption and private investment,” he said. The Rajya Sabha MP suggested a significant reduction in rates and a simplification of the rate structure to reduce revenue uncertainty for states.”Over the last seven years, the spirit of GST has been vitiated by an increased number of rates and the granting of multiple exemptions. The structure also seems to have facilitated evasion. There must be a drastic reduction in the number of rates. Simplification of the rate structure is essential, but must be done in a manner that minimises revenue uncertainty to states and also eliminates the classification disputes that have become so common. The GST compensation cess expires on March 31, 2026. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure,” Jairam Ramesh commented.He also asserted Congress’ stance on demanding the changes saying, “For well over a year and a half at least, the Indian National Congress has been calling for a radically transformed GST 2.0. This was a key pledge in its manifesto for the 2024 Lok Sabha elections.”The Congress leader also pointed to the concerns of MSMEs, which are key employment generators in the economy. He suggested that beyond procedural changes, there should be an increase in the thresholds for interstate supplies. Additionally, sector-specific issues in areas like textiles, tourism, exports, handicrafts, and agricultural inputs need to be addressed. Ramesh also proposed incentivizing states to implement state-level GST for sectors like electricity, alcohol, petroleum, and real estate.This comes after Prime Minister Narendra Modi announced a significant reform in the Goods and Services Tax (GST) aimed at providing relief to consumers and small businesses. Speaking on Independence Day from the Red Fort, PM Modi revealed that these GST revisions would be introduced around Diwali, calling them a “double Diwali gift” for the nation.PM Modi said, “This Diwali, I am offering you a ‘double Diwali’ gift. A major announcement is on the way for the people of the country. Over the past eight years, we have implemented a significant GST reform that has reduced the tax burden nationwide. Now, after eight years, it’s time for a review. We have established a high-powered committee to initiate this review process and have consulted with the states. We are now introducing next-generation GST reforms, which will serve as a Diwali gift for the nation.”He further explained that tax rates on essential goods and daily necessities would be reduced under a simplified framework, providing significant relief and convenience. Go to Source