Congress Urges Comprehensive GST 2.0 Amidst Rate Reduction Talks

In response to Finance Minister Sitharaman's announcement of impending GST rate reductions, the Congress stresses the necessity for a comprehensive GST 2.0 overhaul. Highlighting excessive complexity, ITC fraud, and inadequate enforcement, they urge simplification and revisions to indirect taxes, aiming for a 'Good and Simple Tax' in their 2024 manifesto.

Finance Minister Nirmala Sitharaman's promise of reducing GST rates has prompted the Congress to call for more profound reforms to the tax system. Highlighting their concerns, Congress general secretary Jairam Ramesh emphasized that real change requires a comprehensive approach, not just a mere rate cut.

He argued that the current system's complexity, featuring up to 100 different rates, leads to heightened compliance burdens and facilitates widespread fraud. The Congress has long advocated for a radically simplified and less punitive GST 2.0 as part of its 2024 manifesto.

Fraudulent activities like Input Tax Credit misuse and gaps in enforcement further underline the necessity for systemic change. With the GST compensation cess on track to meet revenue targets, Congress insists the time for meaningful reform has never been more urgent.

(With inputs from agencies.)