New Delhi: Eight opposition-ruled states have backed a reduction in the number of GST rate slabs and lower rates on mass consumption items, Congress leader Jairam Ramesh said on Saturday.
At the same time, the states have sought a mechanism to ensure consumers actually benefit from the cuts. They have also demanded compensation for all states for five years, with 2024-25 as the base year, citing the expected revenue loss.
The states — Karnataka, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal — further called for additional levies on sin and luxury goods, over and above the proposed 40%, to be fully devolved to states.
Ramesh pointed out that the Centre retains 17–18% of its revenue from cesses that are not shared with states. He described the demands as legitimate, citing research by the National Institute of Public Finance & Policy (NIPFP).
The Congress, he said, has long pressed for a “GST 2.0” — one that simplifies procedures, reduces slabs, eases compliance for MSMEs and safeguards states’ interests.
Ramesh expressed hope that the upcoming GST Council meeting would go beyond “headline-grabbing optics” of the Modi government and genuinely strengthen cooperative federalism.
