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Congress Demands Early Release of Discussion Paper on GST 2.0 After PM Modi’s Diwali Tax-Cut Announcement
GST 2.0: On the occasion of August 15, PM Modi has announced that GST rates will be reduced by Diwali this year. This will also reduce the prices of everyday use items. PM Modi said that the government wants to reform the eight-year-old system plagued by litigation and tax evasion. The main opposition party Congress has given its opinion on this. Let us know about this in detail.
Congress on Saturday demanded the release of an official discussion paper at an early date to enable a detailed debate on GST 2.0. The opposition party in power has informed the government that the underlying philosophy of GST must be Goods and Simple Tax and not Growth Sprinkling Tax which it is at present. This assertion of the party in power comes after a statement made by Prime Minister Narendra Modi from the Red Fort on GST.
On the eve of August 15, PM Modi has made it official that GST rates will be cut by Diwali in the current year. This will further lower the prices of commonly used products. PM Modi claimed that the government is keen on overhauling the eight-year-old system marred by litigation and tax avoidance. Congress general secretary in-charge of communication Jairam Ramesh said that for at least one and a half years, his party has been demanding GST 2.0 with fundamental changes.
Referring to the mention of GST 2.0 in the Congress manifesto during the 2024 Lok Sabha elections, Congress leader Ramesh said on Friday that it seems, the Prime Minister has finally understood that unless this change happens and private consumption and private investment increase, economic growth will not accelerate.
He said in a statement, "In the last seven years, the spirit of GST has been corrupted due to the increasing number of rates and many exemptions. It seems that this structure has also encouraged tax evasion. There should be a huge reduction in the number of rates." The Congress leader said simplification of the rate structure is necessary, but it should be done in a manner that minimises revenue uncertainty for states and also eliminates classification disputes which have become all too common. He said, "The GST compensation cess expires on March 31, 2026. Major changes are necessary to remove any revenue uncertainty arising due to this change in the rate structure.
