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New Delhi [India], August 16 (ANI): After Prime Minister Narendra Modi announced reforms on Goods and Services Tax (GST), Congress has demanded an official discussion paper for an informed and wider debate on it. Congress General Secretary Jairam Ramesh, in a statement, laid down the party's demand, saying that GST should be truly a Good and Simple Tax, not "Growth Suppressing Tax. "The Indian National Congress demands an official discussion paper on GST 2.0 very soon so that there can be an informed and wider debate on this vital and pressing national issue. GST 2.0 should be truly a Good and Simple Tax (GST) in letter, spirit, and compliance, not like the Growth Suppressing Tax (GST) it has become," Jairam Ramesh said.

Speaking about PM's announcement, Jairam Ramesh said, "PM seem to have finally woken up" and realised that transformation is required for economic growth. "Yesterday, the Prime Minister seems to have finally woken up to the fact that economic growth will simply not accelerate unless this transformation takes place and increases private consumption and private investment," he said in a statement. The Rajya Sabha MP advised that there should be a drastic reduction in the rates, simplification of the rate structure to minimise revenue uncertainty for states.

"Over the last seven years, the spirit of GST has been vitiated by an increased number of rates and the granting of multiple exemptions. The structure also seems to have facilitated evasion. There must be a drastic reduction in the number of rates. Simplification of the rate structure is essential, but must be done in a manner that minimises revenue uncertainty to states and also eliminates the classification disputes that have become so common. The GST compensation cess expires on March 31, 2026. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure," Jairam Ramesh said.

"The widespread concerns of MSMEs the major employment generators in the economy must be addressed meaningfully. Apart from major procedural changes, this will involve further increasing the thresholds that must apply to interstate supplies as well. Sectoral issues that have surfaced for instance in textiles, tourism, exporters, handicrafts and agricultural inputs must be tackled. In addition, states should be incentivized to move towards the introduction of state-level GST to cover electricity, alcohol, petroleum, and real estate as well," he added.

On Friday, PM Modi announced that the government is set to bring a major reform in the Goods and Services Tax (GST), which will give significant relief to consumers and small businesses.

Addressing the nation on Independence Day from the Red Fort, PM Modi stated that the revisions in the GST would be rolled out around Diwali, describing them as a "double Diwali gift" for the people.

PM Modi said, "This Diwali, I am going to give you a 'double Diwali' gift. A major announcement is coming for the people of the country. Over the past eight years, we implemented a major GST reform that significantly reduced the tax burden across the nation. Now, after eight years, the time has come to review it. We have formed a high-powered committee to begin this review process and have held consultations with the states as well. We are now bringing in next-generation GST reforms. This will become a Diwali gift for the nation."

"Tax rates on essential goods and daily needs will be reduced under a simplified framework. This will bring significant relief and convenience. Our MSMEs and small industries will also benefit greatly from these changes," he added. (ANI)

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)