The Congress party has urged for the release of an official discussion paper on GST 2.0 to initiate a broader discourse on the topic. Emphasizing the need for a “Good and Simple Tax” approach rather than a hindrance to growth, the party highlighted the importance of reform in both letter and spirit. Following the announcement by the Prime Minister regarding reduced GST rates by Diwali, Congress welcomed the move, aiming for lower prices on daily essentials. Jairam Ramesh, the Congress general secretary, stressed that the transformation of GST 2.0, a key promise in the party’s 2024 manifesto, carries significant weight in accelerating economic growth through enhanced private consumption and investment. Ramesh noted concerns over the current GST framework, citing a rise in rates, exemptions, and possible facilitation of tax evasion. advocating for a substantial reduction in the number of tax tiers, he underlined the necessity of a simplified rate structure that minimizes revenue uncertainties for states and resolves classification disputes. Additionally, the party proposed extending the GST compensation cess beyond March 31, 2026, to offset any revenue fluctuations due to rate rationalization.
