Opposition States Rally for GST Rate Cuts and Consumer Benefits
Eight opposition-ruled states have backed a reduction in GST rate slabs and rates for mass consumption items while demanding a mechanism to pass benefits to consumers. Congress leader Jairam Ramesh emphasized the importance of ensuring that states receive compensation, proposing measures to guarantee cooperative federalism.
- Country:
- India
In a significant political development, eight opposition-ruled states have shown solidarity in their call for a reduction in the number of GST rate slabs and rates for mass consumption items. The states have also pressed for a mechanism ensuring the benefits directly reach the consumers, as per Congress leader Jairam Ramesh.
Ramesh highlighted the demand for compensation to all states for five years, using 2024-25 as the base year. The eight states, including Karnataka, Himachal Pradesh, and West Bengal, anticipate adverse revenue impacts from the proposed rate cuts and have also sought additional levies on 'sin' and luxury goods to be transferred fully to the states.
The upcoming GST Council meeting, led by Finance Minister Nirmala Sitharaman, aims to address these matters with discussions on transitioning to a two-slab taxation system, reflecting a push towards 'GST 2.0'. The goal is to simplify procedures, focusing particularly on MSMEs, and promote genuine cooperative federalism.
(With inputs from agencies.)
Google News