GST Overhaul: The Journey from GST 1.0 to GST 1.5

The GST Council's recent approval of extensive changes to the Goods and Services Tax (GST) framework, referred to as 'GST 1.5', has sparked a strong response from the Congress party. They argue that this reform falls short of a complete overhaul and insist that a true 'GST 2.0' is still necessary.

Congress leaders contend that Rahul Gandhi had proposed these changes years ago, but the government only now sees merit in them. They demand that all states receive five years of compensation, basing 2024-25 as the start year, due to expected revenue declines.

The Congress further criticizes the current system for its complexity and impact on small businesses and MSMEs. They note the Modi government's reduction in corporate taxes and the imposition of GST on essential commodities, highlighting disparities in taxation between the wealthy and lower-income groups.

(With inputs from agencies.)