‘Next Gen GST precursor to eventual single tax slab GST': Govt sources slam Congress for claiming credit

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Describing the proposed GST tax reforms as ‘Next Gen GST’, senior government officials on Saturday said that the two-slab tax regime will eventually pave the way for a single sales/services tax rate, hopefully by 2047.

They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.

The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the goods and services tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.

They said the new GST regime will be a 'game changer,' and lead to single tax rate.

The government on also lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the party was not even present when the landmark one-nation, one-tax was passed, and its statements now smack of hypocrisy.

Recalling the history of Goods and Services Tax (GST) rollout, top government sources told news agency PTI the Congress party when it came to power at the Centre in 2004 had the economy in the “pink of health” but it still could not convince the states to come together for GST as their leaders lacked “statesmanship”.

"The Congress party is now desperate to take credit for our pro-poor, pro-middle class, and pro-MSME plan to slash tax rates and slabs. This is typical of Congress which has an approach of being obstructionist and is against the common man," the source said.