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Time of India
2 days ago
- Business
- Time of India
GST 2.0 should be 'good, simple tax', not 'growth suppressing tax': Congress
Jairam Ramesh NEW DELHI: Congress on Saturday demanded an official discussion paper on 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. Its assertion came a day after the PM announced that GST rates will be lowered by Diwali, bringing down prices of everyday use items. Noting that a transformed GST 2.0 was a key pledge in the Congress manifesto for the 2024 LS elections, Congress general secretary Jairam Ramesh said the PM 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. Ramesh 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," he said.
Malaysia Sun
2 days ago
- Business
- Malaysia Sun
Congress demands official discussion paper on GST 2.0 after PM Modi announces reforms
New Delhi [India], August 16 (ANI): After Prime Minister Narendra Modi announced reforms on Goods and Services Tax (GST), Congress has demanded an official discussion paper for an informed and wider debate on it. Congress General Secretary Jairam Ramesh, in a statement, laid down the party's demand, saying that GST should be truly a Good and Simple Tax, not '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,' Jairam Ramesh said. Speaking about PM's announcement, Jairam Ramesh said, 'PM seem to have finally woken up' and realised that transformation is required for 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 in a statement. The Rajya Sabha MP advised that there should be a drastic reduction in the rates, simplification of the rate structure to minimise 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 said. 'The widespread concerns of MSMEs the major employment generators in the economy must be addressed meaningfully. Apart from major procedural changes, 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. In addition, states should be incentivized to move towards the introduction of state-level GST to cover electricity, alcohol, petroleum, and real estate as well,' he added. On Friday, PM Modi announced that the government is set to bring a major reform in the Goods and Services Tax (GST), which will give significant relief to consumers and small businesses. Addressing the nation on Independence Day from the Red Fort, PM Modi stated that the revisions in the GST would be rolled out around Diwali, describing them as a 'double Diwali gift' for the people. PM Modi said, 'This Diwali, I am going to give you a 'double Diwali' gift. A major announcement is coming for the people of the country. Over the past eight years, we implemented a major GST reform that significantly reduced the tax burden across the nation. Now, after eight years, the time has come to review it. We have formed a high-powered committee to begin this review process and have held consultations with the states as well. We are now bringing in next-generation GST reforms. This will become a Diwali gift for the nation.' 'Tax rates on essential goods and daily needs will be reduced under a simplified framework. This will bring significant relief and convenience. Our MSMEs and small industries will also benefit greatly from these changes,' he added. (ANI)
The Hindu
2 days ago
- Business
- The Hindu
Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Congress
The Congress on Saturday (August 16, 2025) demanded an official discussion paper on 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. 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. Independence Day highlights 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. Noting that a transformed GST 2.0 was a key pledge in the Congress manifesto for the 2024 Lok Sabha elections, Mr. Ramesh on Friday (August 15, 2025) 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. 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." Mr. 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," Mr. 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%, 12%, 18% and 28% — 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.
