Opposition States Rally for GST Rate Cuts
Eight opposition-ruled states have voiced their support for reducing GST rate slabs and rates for mass consumption items, advocating a mechanism to ensure these benefits reach consumers. Congress leader Jairam Ramesh emphasized the need for compensating states affected by cuts and called for additional levies on luxury and 'sin' goods to be transferred to states.
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In a strong show of solidarity, eight opposition-ruled states have thrown their weight behind proposals to reduce GST rate slabs and lower rates on mass consumption goods. Congress leader Jairam Ramesh highlighted the necessity for a mechanism that guarantees these benefits reach consumers.
The opposition leaders are also calling for a five-year compensation scheme beginning in 2024-25 to mitigate revenue losses from the rate cuts. Additionally, they are seeking that extra levies on 'sin' and luxury goods over 40 percent should be allocated entirely to the states.
This demand comes in the run-up to the GST Council meeting on September 3, chaired by Finance Minister Nirmala Sitharaman. The council will discuss significant GST reforms, with implications for cooperative federalism and state revenues. The Congress continues to push for simplicity and fairness in GST implementation.
(With inputs from agencies.)
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