Congress demands broader deliberations on GST 2.0
'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,' Congress member of Parliament (MP) Jairam Ramesh said in an official statement. He pressed for a simplified rate structure that reduces revenue uncertainty for states.
His remarks came a day after Modi unveiled plans for a sweeping overhaul of the GST regime, hinting at lower rates on most items by Diwali. According to people aware of the blueprint, most goods taxed at 12% could drop to 5%, while several currently under the 28% bracket may shift to 18%. A 40% slab is being considered for luxury and sin goods.
Ramesh further recommended extending the GST compensation cess, set to expire next year, to cushion states against revenue shocks from rate rationalisation. He also called for incentivising states to bring electricity, alcohol, petroleum and real estate under the GST net.
Raising concerns of the MSME sector, Ramesh stressed the need for meaningful redressal, along with targeted reforms in textiles, tourism, and exports. 'Apart from major procedural changes, this will involve further increasing the thresholds that must apply to interstate supplies as well,' he said.
'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 in letter, spirit and compliance – not like a Growth Suppressing Tax it has become,' Ramesh added.
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