Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Cong
GST 2.0
soon for a wider debate on it and said the reform should be towards a "
Good and Simple Tax
" in letter, spirit, and compliance, and not the "
Growth Suppressing Tax
" it has become.
Independence Day 2025
Modi signals new push for tech independence with local chips
Before Trump, British used tariffs to kill Indian textile
Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency
The opposition party's assertion came a day after Prime Minister Narendra Modi announced that GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year-old regime that has been plagued by litigation and evasion.
Congress general secretary in-charge of communications,
Jairam Ramesh
, said that for well over a year and a half at least, the party has been calling for a radically transformed GST 2.0.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Dhoni's Exclusive Home Interior Choice?
HomeLane
Get Quote
Undo
Noting that a transformed GST 2.0 was a key pledge in the Congress manifesto for the 2024 Lok Sabha elections, Ramesh on Friday said 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.
"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," he said in a statement.
Live Events
The Congress leader said 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."
Ramesh said the widespread concerns of MSMEs -- the major employment generators in the economy -- must be addressed meaningfully, he said, adding that apart from major procedural changes in GST, this will involve further increasing the thresholds that must apply to interstate supplies as well.
Sectoral issues that have surfaced, for instance, in textiles, tourism, exporters, handicrafts and agricultural inputs, must be tackled, he said.
In addition, states should be incentivised to move towards the introduction of state-level GST to cover electricity, alcohol, petroleum, and real estate as well, the Congress leader opined.
"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," Ramesh said.
Soon after the prime minister's announcement from the ramparts of the Red Fort on the 79th Independence Day, the Union Finance Ministry said it has proposed that most goods and services be taxed in two slabs -- standard and merit -- and a select few items be charged special rates.
This is to replace the current goods and services tax (GST) structure, where sale of goods and rendering of services are taxed in four different brackets -- 5 per cent, 12 per cent, 18 per cent and 28 per cent -- with luxury and sin goods attracting a levy on top of the highest rate of 28 per cent.
"This Diwali, I am going to make it a double Diwali for you," Modi had said in his address to the nation.
Stating that over the past eight years, his government has undertaken major GST reforms, the prime minister said, "We have discussed with states and we are bringing next-generation
GST reforms
that will reduce the tax burden across the country."
"Tax on items for the common man will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy," he had said.
GST, which subsumed a host of taxes and local levies, was rolled out on July 1, 2017.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
10 minutes ago
- The Hindu
Farmers to lay siege to Vidhana Soudha in Bengaluru on August 20
Members of Karnataka Rajya Raitha Sangha and Karnataka State Sugarcane Growers' Association will lay siege to the Vidhana Soudha on August 20, seeking the implementation of their long-pending demands. At a press conference here on Saturday, H. Bhagyaraj, president of the sugarcane growers' association, said that farmers will also hold a 'satyagraha' at Freedom Park in Bengaluru. Though the country celebrated Independence Day on August 15,there was little for farmers to celebrate as the government had failed to ensure scientific pricing for agricultural produce, he said. Mr. Bhagyaraj said that the Fair and Remunerative Price (FRP) for 2025-26 should be fixed at ₹4,500 per ton, and harvesting and transportation costs must be borne by the sugar factories. The farmers also expressed concern that the weighing scales are not scientifically calibrated, as a result of which they suffer losses. This should be avoided by installing the weighing scales in front of the factories so that the farmers can monitor the process as well, they said. Mr. Bhagyaraj pointed out that the factories owed dues to the tune of ₹950 crores to sugarcane farmers, and added that this should be cleared immediately. Drawing attention to the shortage of fertilizers, the association said that the issue has been politicised by both the State and the Centre, and that it was the responsibility of the governments to ensure the availability of fertilizers and its smooth distribution. The authorities were urged to crack down on traders creating artificial scarcity by hoarding fertilizer stocks or selling them at a price higher than the rates fixed by the government. Mr. Bhagyaraj urged the government to implement the Mekedatu project without further delay, and blamed the Centre and the State for failing to expedite the works. The farmers stated that banks tend to insist on CIBIL scores before releasing agricultural loans, and hence urged the government to change the policy and delink CIBIL scores from farm loans. Any delay in repayment of loan due to crop failure or vagaries of nature has a negative bearing on the CIBIL score and affects the farmers, the association said. Drawing attention to the low penetration of crop insurance among farmers, the association said that the policy and insurance schemes should be tweaked to make a particular land of the farmer concerned as the unit area of insurance. When the unit area for crop insurance is too large, individual farmers suffer because damage to their crops may be overlooked and their claims rejected, if conditions in other parts of the area are considered normal, it added. Other demands included immediate release of ₹1,000 crore by way of incentives which is pending for dairy farmers, establishment of crop and milk procurement centres at the gram panchayat level, rescinding the Land Reforms Act and APMC (Amendment) Act, implementation of the recommendations of M.S. Swaminathan Committee, a law ensuring statutory guarantee of Minimum Support Price for farmers' produce, etc.
Time of India
19 minutes ago
- Time of India
ED searches DMK minister Periyasamy's residences
CHENNAI: The Enforcement Directorate (ED) raided the houses, business premises and even the MLA hostel rooms of the state rural development minister I Periyasamy and his family members, including his son, IP Senthilkumar MLA, in Chennai and Dindigul, their hometown. Tired of too many ads? go ad free now DMK and its allies were quick in condemning the ED raids saying they were politically-motivated, and that the DMK would not be cowed down by either the ED or Modi. The ED officials, who did not reveal the background for the searches, engaged a duplicate key maker to open the locked rooms in the official residence of the minister on Greenways Road. Meanwhile, the secretary of the assembly secretariat, K Srinavasan, lodged a complaint with Triplicane police alleging that 'unknown persons' had trespassed into the MLA hostel. City police acknowledged the receipt of the complaint by issuing a community service receipt (CSR). Sources said authorities locked the minister's cabin in the Secretariat in anticipation that ED teams might land there too, but ED sleuths stopped with the residence and the MLA hostel. Simultaneous searches happened in three places in Dindigul: the minister's residence in Durairaj Nagar, Senthilkumar's residence at Vallalar Nagar, and the minister's daughter Indra's residence at Seelapadi. After the information about the raids spread, DMK cadres gathered in front of the houses in large numbers. While the CRPF personnel guarded the premises, state police personnel were deployed in the localities concerned to maintain the law and order situation. In Chennai, the searches were wound up in the evening, but the ED is yet to issue an official statement on the searches. DMK organising secretary R S Bharathi condemned the ED action and said the DMK and its cadress cannot be scared by the assaults of the central agencies. Tired of too many ads? go ad free now 'We will not be cowed down by the ED or Modi,' he said. MDMK general secretary Vaiko also condemned the ED raids and said that the Union govt was misusing central agencies to target opposition leaders for a political motive and as a means to intimidate and stifle their voices. 'The central govt is using the Income Tax and Enforcement Departments to intimidate its opponents and stifle the voice. That is why the raid is being carried out at the house of Periyasamy. This is strongly condemnable,' he said. It may be noted that the Madras high court had recently reversed the order of the Dindigul trial court, which relieved the DMK leader and his family members in the Rs 2 crore disproportionate assets case. The case pertains to the accumulation of assets to the tune of Rs 2 crore between 2006 and 2010 when Periyasamy was the housing minister. While DVAC filed a chargesheet against Periyasamy, his wife Suseela, and sons Senthilkumar and Prabhu, the ED also registered a money-laundering case based on the DVAC FIR and interrogated Periyasamy in 2022. However, the Dindigul trial court acquitted all of them from the case. But the Madras high court set aside the trial court order in April and ordered a fresh trial.
Time of India
19 minutes ago
- Time of India
Girl dies, one hurt as school balcony collapses in Udaipur
Udaipur: In a grim reminder of the Jhalawar school tragedy, a 12-year-old girl died and another was injured when a balcony of the under-renovation PM Shree Govt Higher Primary School in Patharwadi village near Kotra in Udaipur district, collapsed on Independence Day, Friday. Earlier, on July 25, seven school children had died and several others were injured when a classroom roof and wall of a govt school collapsed due to rains at Piplodi village in Jhalawar district. In the latest mishap at Udaipur's Patharwadi village, the two girls, who were not students at the school, were playing nearby when the balcony gave way. Moli, visiting her uncle in the village, was crushed under the debris and died on the spot, while 11-year-old Payal sustained injuries and was subsequently hospitalized in Gujarat, police said. The mishap ignited protests among villagers, who alleged use of substandard materials in the school's renovation. "It is a tragic incident. One girl who was not a student at the school has died, while another girl, who was, is critically injured. I have asked the authorities to inquire about the matter," said school education minister Madan Dilawar. Kotra SHO Moongla Ram confirmed that the school's Independence Day celebrations were being held at a different location due to ongoing construction work. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo by Taboola by Taboola Dy SP Rajendra Singh Rathore noted that the renovation was part of the PM Shree scheme aimed at improving the school's dilapidated condition. In response to the mishap, the education department Saturday suspended acting assistant engineer Hem Singh and terminated the services of a civil consultant, holding them accountable for negligence. Their suspension will remain in effect pending the outcome of an investigation. Authorities have also ordered the registration of an FIR against the contractor firm, Messrs Divyanshi Enterprises, for lapses in the approved construction work. A high-level investigation has been initiated to determine the causes of the collapse and to fix accountability. As the inquiry unfolds, the office of the suspended AEN will be overseen by the additional district project coordinator of Samagra Shiksha, Udaipur. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
