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.
\nCongress 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.
\n“The ball is now in the Union government's court will they take this historic opportunity?” Ramesh asked in a statement.
\n“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.
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\n“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.
\nWhile some part of this increase in refunds is certainly credible, a significant component of these refunds is likely fraudulent, he claimed.
\n“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.
\nInput 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.
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