Thu Sep 04 04:52:01 UTC 2025: **Here’s a summary and news article based on the provided text:**

**Summary:**

The GST Council approved a major overhaul of the Goods and Services Tax (GST) regime in India, aiming to simplify the tax structure and boost consumer spending. The Congress party, however, has criticized the changes as insufficient, labeling it “GST 1.5” and arguing that it falls short of a true GST 2.0. Key concerns raised include the lack of compensation extension for states and doubts about whether the changes will stimulate private investment and ease the burden on MSMEs. The new GST structure will have two main slabs of 5% and 18%, effective from September 22, 2025, leading to tax reductions on common use items and insurance premiums.

**News Article:**

**GST Overhaul Sparks Debate: Congress Calls it “GST 1.5,” Citing Unresolved Issues**

**New Delhi, September 4, 2025** – The Indian National Congress (INC) has reacted to the sweeping changes announced to the Goods and Services Tax (GST) regime with skepticism, dubbing the overhaul “GST 1.5” and suggesting a true GST 2.0 is still needed. The GST Council approved the changes on Wednesday.

The move by the GST Council aims to simplify the tax structure by primarily using 5% and 18% slabs and reduce tax incidence on various goods, including common household items and insurance premiums. Finance Minister Nirmala Sitharaman stated that the decisions were taken unanimously, with no objections from any state.

However, Congress General Secretary Jairam Ramesh criticized the plan, stating that a key demand of the states – the extension of compensation for revenue loss – remains unaddressed. He also expressed doubt whether the changes will stimulate private investment, particularly in manufacturing, or alleviate the burden on Micro, Small, and Medium Enterprises (MSMEs).

“Whether this new GST 1.5, if it can be called that, stimulates private investment…remains to be seen. Whether this will ease the burden on MSMEs, time alone will tell,” Ramesh stated.

The Congress party reiterated its long-standing call for a GST 2.0 that minimizes tax evasion, simplifies rates on mass consumption goods, and addresses the inverted duty structure. The party also criticized Prime Minister Modi for preempting the GST Council’s decisions with his Independence Day address, questioning the council’s role.

The new GST rates are set to take effect on September 22, 2025, with most personal-use items and aspirational goods seeing tax cuts. However, the debate over the effectiveness and completeness of the GST overhaul is likely to continue.

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