The Congress on Saturday, 16 August, demanded that the Centre release an official discussion paper on “GST 2.0” to enable a wider national debate on reforms to the indirect tax system, arguing that the regime must evolve into a “Good and Simple Tax” rather than the “Growth Suppressing Tax” it has become.

The demand came a day after Prime Minister Narendra Modi, in his Independence Day address, announced that GST rates would be reduced by Diwali to ease the burden on households and support economic growth. The Union Finance Ministry later said it has proposed replacing the current four-rate structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent with a simpler two-slab system — standard and merit — while reserving special rates for select items.

Congress general secretary Jairam Ramesh noted that a restructured GST was a key pledge in the party’s 2024 Lok Sabha manifesto, and said the government had finally acknowledged that growth cannot accelerate without such transformation.

“Over the last seven years, the spirit of GST has been vitiated by an increased number of rates and the granting of multiple exemptions. The structure also seems to have facilitated evasion. There must be a drastic reduction in the number of rates,” Ramesh said in a statement.