The Opposition social gathering’s assertion got here a day after Prime Minister Narendra Modi introduced that GST charges will likely be lowered by Diwali, bringing down costs of on a regular basis use objects, as his authorities appears to be like to reform the eight-year-old regime that has been stricken by litigation and evasion.
Independence Day highlights
Congress basic secretary in-charge of communications, Jairam Ramesh, stated that for nicely over a yr and a half not less than, the social gathering has been calling for a radically remodeled GST 2.0.
Noting {that a} remodeled GST 2.0 was a key pledge within the Congress manifesto for the 2024 Lok Sabha elections, Mr. Ramesh on Friday (August 15, 2025) stated the Prime Minister appears to have lastly woken as much as the truth that financial development will merely not speed up except this transformation takes place and will increase non-public consumption and personal funding.
“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 stated in an announcement.
The Congress chief stated simplification of the speed construction is important, however have to be achieved in a way that minimises income uncertainty to states and in addition eliminates the classification disputes which have change into so frequent.
“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 stated the widespread considerations of MSMEs — the most important employment turbines within the financial system — have to be addressed meaningfully, he stated, including that aside from main procedural adjustments in GST, this can contain additional rising the thresholds that should apply to interstate provides as nicely.
Sectoral points which have surfaced, as an illustration, in textiles, tourism, exporters, handicrafts and agricultural inputs, have to be tackled, he stated.
In addition, States ought to be incentivised to maneuver in direction of the introduction of State-level GST to cowl electrical energy, alcohol, petroleum, and actual property as nicely, the Congress chief opined.
“The Indian National Congress calls for an official dialogue paper on GST 2.0 very quickly in order that there may be an knowledgeable and wider debate on this very important and urgent nationwide difficulty.
“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 stated.
Soon after the Prime Minister’s announcement from the ramparts of the Red Fort on the 79th Independence Day, the Union Finance Ministry stated it has proposed that the majority items and companies be taxed in two slabs — normal and benefit — and a choose few objects be charged particular charges.
This is to exchange the present items and companies tax (GST) construction, the place sale of products and rendering of companies are taxed in 4 totally different brackets — 5%, 12%, 18% and 28% — with luxurious and sin items attracting a levy on prime of the best fee of 28 per cent.
“This Diwali, I am going to make it a double Diwali for you,” Modi had stated in his handle to the nation.
Stating that over the previous eight years, his authorities has undertaken main GST reforms, the prime minister stated, “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 stated.
GST, which subsumed a bunch of taxes and native levies, was rolled out on July 1, 2017.
Leave a Comment