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Key Points

The Congress party has finally acknowledged potential GST reforms proposed by the Modi government after years of criticism. Jairam Ramesh highlighted the need for a comprehensive tax restructuring that simplifies compliance and supports economic growth. The party demands an official discussion paper to facilitate a broader debate on the proposed changes. These potential reforms could significantly impact India's taxation landscape and economic momentum.

Key Points: Modi's GST Reforms Congress Demands Radical Tax Overhaul

  • Congress welcomes potential GST reforms after seven years of criticism
  • Jairam Ramesh demands official discussion paper on tax transformation
  • PM Modi promises GST reforms before Diwali
  • Call for reduction in tax rates and MSME support
2 min read

Finally, woke up to need for radical transformation: Cong on Modi govt's GST reforms push

Congress critiques Modi's GST reforms, calls for simplified tax structure and MSME support ahead of potential transformative changes

"GST 2.0 should be truly a Good and Simple Tax - Jairam Ramesh, Congress Leader"

New Delhi, Aug 16

Congress party on Saturday welcomed the proposed reforms in the Goods and Services (GST) tax, however, with a pointed swipe at the Centre, claiming that it kept dragging its feet on the crucial issue for seven long years.

In his Independence Day speech, Prime Minister Narendra Modi promised a Diwali gift for the citizens of the country as he announced that the next generation GST reforms would be rolled out before the festival of lights.

Reacting to PM Modi's announcement, Jairam Ramesh said that the Congress party has been pressing for "sweeping reforms" in the GST, but the Centre kept dithering over the issue. He also said that reforming the GST was one of its key promises in the 2024 election manifesto.

Taking to X, Jairam Ramesh wrote, "Over the last seven years, the spirit of GST has been vitiated by increased number of rates and the granting of multiple exemptions. The structure also seems to have facilitated evasion."

"Yesterday, 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 added.

He further said that the 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," he said.

He further called for a drastic reduction in the number of rates, stating that its simplification 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, 2006. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure," he added.

He further suggested, "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."

- IANS

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Reader Comments

S
Shreya B
As a small business owner, I've struggled with GST compliance. The portal crashes frequently and rules keep changing. Hope the new version considers ground realities. MSMEs are the backbone of our economy but get treated like tax evaders!
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Aditya G
Typical political blame game. Congress had 10 years to implement GST but didn't. Now BJP is doing the heavy lifting. At least they're trying to fix it before elections instead of making empty promises.
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Priya S
The textile sector has been suffering badly under current GST rates. Handloom workers in my village are struggling. Hope this revision brings some relief to traditional industries 🇮🇳
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Michael C
Working in India for 3 years now. GST system here is more complex than most countries. Single rate like Singapore would be ideal. The classification disputes waste so much time and resources!
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Kavya N
Why announce it as 'Diwali gift'? Tax reforms shouldn't be treated like freebies. Just make a sensible system that helps businesses grow and creates jobs. Less politics, more governance please!
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Vikram M
Hope they don't rush this like demonetization. Need proper stakeholder consultations, especially with state governments. Federal structure can't be ignored

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