Congress MP Jairam Ramesh said GST 2.0 should be truly a Good and Simple Tax in letter, spirit and compliance – not like a Growth Suppressing Tax it has become.

The Congress on Saturday demanded broader deliberations on the Goods and Services Tax (GST) 2.0 announced by Prime Minister Narendra Modi in his Independence Day address. 

The opposition party criticised the existing framework for enabling evasion and called for a drastic cut in the number of tax slabs.

“Prime Minister seems to have finally woken up to the fact that economic growth will simply not accelerate unless this transformation takes place and increases private consumption and private investment,” 

Congress member of Parliament (MP) Jairam Ramesh said in an official statement. He pressed for a simplified rate structure that reduces revenue uncertainty for states.

His remarks came a day after Modi unveiled plans for a sweeping overhaul of the GST regime, hinting at lower rates on most items by Diwali. According to people aware of the blueprint, 

most goods taxed at 12% could drop to 5%, while several currently under the 28% bracket may shift to 18%. A 40% slab is being considered for luxury and sin goods.

Source: Hindustantimes