Debate Over GST Council's Relevance Erupts After Modi's Preemptive Reforms Unveiling

Congress MP Jairam Ramesh has raised concerns over the relevance of the GST Council, suggesting it has been reduced to a mere formality. He pointed out that Prime Minister Narendra Modi had already unveiled key tax reforms in his Independence Day speech, preceding formal announcements by Union Finance Minister Nirmala Sitharaman.

Ramesh emphasized that the Congress party has long championed GST reforms to lower rates on mass consumption items and ease compliance for small businesses. He noted that the current GST structure has stalled growth and increased disputes, echoing concerns raised since its 2017 inception.

The recent reforms announced by Sitharaman, consolidating tax slabs and broadening the zero-tax category, are part of the "Next-Generation GST" initiative. However, significant issues like extended state compensation remain unresolved, leaving the true impact of these changes on private investment and MSMEs uncertain.

(With inputs from agencies.)