CPI: Fiscal sustainability remains a major concern under GST 2.0

THE 25th Party Congress of the Communist Party of India (CPI) on Tuesday expressed its serious concerns regarding the recently announced Goods and Services Tax (GST) 2.0 reforms, which came into effect on September 22.

- EXPRESS NEWS SERVICE @New Dethi

One of the key resolutions adopted by the party congress being held in Chandigarh noted that without a credible compensation mechanism, a more progressive tax structure, and transparent governance, GST2.0 risks repeating the shortcomings of the original rollout, achieving only partial administrative efficiency at the cost of fiscal stability, economic equity, and federal harmony.

“Evidence indicates that lowerand middle-income households carry a disproportionately high share of the GST burden, as they spend a larger portion of their income on goods and services subject to taxation,” the party said.