Need of hour radically-simplified, less-punitive GST 2.0: Congress
GST
Dated:- 9-3-2025
PTI
New Delhi, Mar 9 (PTI) With Finance Minister Nirmala Sitharaman asserting that the GST rates will come down further, the Congress on Sunday said any changes in the tax must be more comprehensive than a mere rate reduction and stressed the need for a radically-simplified and less-punitive GST 2.0.
Congress general secretary in-charge communications Jairam Ramesh said his party had envisaged a GST 2.0 a truly “Good and Simple Tax” in its manifesto for the 2024 Lok Sabha polls and it remains committed to that vision.
“The ball is now in the Union government's court will they take this historic opportunity?” Ramesh asked in a statement.
“The Finance Minister has declared that GST rates will be reduced soon. The Indian National Congress reiterates that any changes in GST must be more comprehensive than a mere rate reduction,” he said.
Reducing the tax on caramel popcorn, without fu
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lexity of the current GST regime reflects a lack of seriousness on the government's part to enforce a truly “Good and Simple Tax”, Ramesh said.
“Second, a key issue in recent months has been the slowdown in GST net collections due to high refunds. Data from December 2024 showed that net GST collections, after adjusting for refunds, slumped to 3.3 per cent growth partly due to the 45.3 per cent increase in refunds to taxpayers,” he said.
While some part of this increase in refunds is certainly credible, a significant component of these refunds is likely fraudulent, he claimed.
“The complexity of the GST system especially when combined with a software system that is ridden with loopholes has allowed for large-scale fraud,” the Congress leader alleged.
Input Tax Credit (ITC) fraud is particularly common, with more than Rs 35,132 crore worth of fraud identified, amidst a recovery rate of just 12 per cent, he noted.
Weak supply-chain tracking means that buyers can claim ITC without r
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ndirect taxes like the GST, Ramesh said.
This is the appropriate year for a GST 2.0 since the GST compensation cess is likely to meet its revenue targets later this financial year, the Congress leader asserted.
The finance ministry, therefore, has a fiscal cushion to anchor the simplified GST, he added.
“The Indian National Congress had envisaged a GST 2.0 a truly Good and Simple Tax in its Nyay Patra for the 2024 Lok Sabha elections, and remains committed to this vision. The ball is now in the Union government's court will they take this historic opportunity?” Ramesh asked.
His statement comes a day after Sitharaman said on Saturday that the GST rates will come down further and the work on rationalising the tax rates and slabs has “almost reached a finale”.
She said the revenue neutral rate (RNR) came down from 15.8 per cent at the time of the launch of GST on July 1, 2017 to 11.4 per cent in 2023.
“It will come down even further,” the minister added.
The GST Council, headed
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