The Congress party has demanded that the government release an official discussion paper on the proposed GST 2.0 reforms, announced by Prime Minister Narendra Modi during his Independence Day address. The opposition has urged for a wider and informed debate before changes are implemented.
Congress General Secretary Jairam Ramesh said GST must evolve into a “Good and Simple Tax” instead of remaining a “Growth Suppressing Tax.” Criticising the current system, he argued that the proliferation of multiple rates, exemptions, and disputes has diluted the original intent of GST.
“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 national issue. GST 2.0 should be truly a Good and Simple Tax in letter, spirit, and compliance,” Ramesh said.
Taking a dig at PM Modi, Ramesh added, “The Prime Minister seems to have finally woken up to the fact that economic growth cannot accelerate without a transformation that boosts private consumption and investment.”
The Congress leader suggested sweeping reforms, including:
- A drastic reduction in tax slabs.
- Simplification of the rate structure to curb evasion and reduce uncertainty for states.
- Extension of the GST compensation cess beyond March 31, 2026.
- Meaningful relief for MSMEs, textiles, tourism, exporters, handicrafts, and agriculture-related sectors.
- Incentives for states to eventually bring electricity, alcohol, petroleum, and real estate under GST.
Meanwhile, Prime Minister Modi, while addressing the nation from the Red Fort, described the upcoming changes as a “double Diwali gift” for citizens and small businesses. He said a high-powered committee has been formed to consult states and finalise the reforms, which are expected to be rolled out around Diwali.
“Tax rates on essential goods and daily needs will be reduced under a simplified framework. MSMEs and small industries will also gain significant relief,” the Prime Minister assured.
