Opposition States Rally for GST Reforms Amid Reduction Proposals

In a significant development, eight opposition-ruled states extended their backing to a reduction in GST rate slabs and a cut in rates for mass-consumption goods, Congress leader Jairam Ramesh announced on Saturday.

The states, including Karnataka and Tamil Nadu, have simultaneously called for a mechanism to ensure that the rate reductions benefit consumers directly. They have emphasized the need for a compensation plan to offset potential revenue impacts, with 2024-25 set as the base year, and additional levies on sin and luxury goods entirely transferred to states.

Ramesh underscored the legitimacy of these demands, aligning them with recent research from the Union Finance Ministry's National Institute of Public Finance & Policy. The Congress party continues to advocate for a revamped GST that simplifies compliance for MSMEs while safeguarding state interests ahead of the upcoming GST Council meeting.

(With inputs from agencies.)