Congress demands official paper on GST 2.0, calls for 'Good and Simple Tax'

The party emphasised that reforms should minimize revenue uncertainty for states.Congress Has Been Demanding GST 2.0 for Over One-and-a-Half Years.

Congress General Secretary Jairam Ramesh, in a statement, said, "For over one-and-a-half years, Congress has been advocating for a transformative GST 2.0.

This was a key promise in the Congress manifesto for the 2024 Lok Sabha elections. Yesterday, the Prime Minister finally acknowledged that without these changes, along with increased private consumption and investment, economic growth cannot accelerate."

He added, "Over the past seven years, the spirit of GST has been undermined by rising tax rates and numerous exemptions, seemingly encouraging tax evasion."

Ramesh stressed the need for significant reductions in GST rates and simplification of the rate structure to minimize revenue uncertainty for states and resolve classification disputes, which have become common.

He noted, "The GST compensation cess is set to expire on March 31, 2026. Its duration should be extended to address any revenue uncertainties arising from rate rationalisation."